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DEPT. 


To  the  Governor  and  Legislature  of  the  State  of  Utah: 

In  October  1912,  this  Commission  published  a  Prelim- 
inary Report  setting  forth  the  purpose  for  which  this 
Board  was  organized;  the  result  of  its  investigations  up 
to  that  time;  and  a  statement  of  the  principal  measures 
that  it  expected  to  recommend  in  amendment  to  the  reve- 
nue laws  of  the  State. 

The  edition  of  that  report  is  now  practically  exhaust- 
ed, and  we  believe  that  we  cannot  do  better  as  an  intro- 
duction to  this,  our  final  report,  than  to  incorporate  it 
herewith.     It  is  as  follows: 


867046 


Preliminary  Report 

OF  THE 

BOARD  OF  COMMISSIONERS 

ON 

REVENUE  AND  TAXATION 

FOR  THE  STATE  OF  UTAH 


Published  by  the  Board  of  Commissioners  on  Revenue  and 
Taxation,  Salt  Lake  City,  Utah,  October.  1912. 


INTRODUCTORY. 

By  Chap.  84^  Laws  of  1911,  the  Legislature  of  the 
State  of  Utah  provided  for  a  Board  of  Commissioners  on 
Revenue  and  Taxation,  consisting  of  three  members,  to 
be  appointed  by  the  Governor  and  confirmed  by  the 
Senate. 

In  February,  1912,  Governor  Spry  appointed  as  mem- 
bers of  said  Commission  Mr.  Harden  Bennion,  Mr.  C.  S. 
Patterson,  and  Mr.  F.  W.  Kirkham,'  who  immediately 
qualified  as  required  by  law,  and  organized  by  electing 
Mr.  Bennion  Chairman  and  Mr.  Kirkham  Secretary  of 
said  Board. 

The  duties  of  the  Board  so  constituted,  are  defined 
by  Sec.  3  of  the  Act,  and  are  as  follows: 

"Sec.  3.  The  duties  of  said  Board  of  Commissioners 
shall  be  as  follows: 


1.  Make  a  careful  and  complete  compilation  of  all 
l^v/s  bearing  ripon  the  subject  of  taxation  now  in  force  in 
the  State  of  Utah. 

2.  Investigate  the  system  of  revenue  and  taxation 
in  force  in  this  State. 

3.  Shall  carefully  and  thoroughly  consider  the  reve- 
nue and  taxation  laws  of  the  different  states  of  the  Union 
and  shall  avail  themselves  of  all  information  afforded  by 
the  reports  of  tax  commissions  of  other  states  and  shall 
inquire  into  the  systems  of  county  and  municipal  taxation 
in  force  in  other  states,  especially  those  in  which  new 
methods  of  taxation  have  been  introduced,  with  a  view 
to  ascertain  what  changes,  if  any,  in  the  tax  laws  of  this 
State  are  expedient  and  desirable. 

4.  Embody  the  results  of  their  investigation  in  a 
report  to  the  10th  sessioji  of  the  Legislature  and  shall 
recommend  such  changes  in  the  present  revenue  and  taxa- 

,  tion  laws  of  the  State  of  Utah,  as  in  their  Judgment,  will 
0  improve,  both  in  theory  and  in  operation,  the  revenue  and 
taxation  system  of  this  State,  together  with  their  sugges- 
tions as  to  the  proper  classification  and  arrangement  of 
the  present  statutes  on  revenue  and  taxation.  As  a  part 
of  their  report  said  Commission  shall  prepare  a  bill  cover- 
ing the  whole  subject  of  revenue  and  taxation,  which  said 
bill  shall  be  in  complete  form  for  introduction  in  the  10th 
session  of  the  Legislature.'' 

The  Board  did  not  understand  the  law  to  require  the 
compilation  of  our  present  laws  in  form  for  publication, 
but  only  for  the  use  of  the  members  in  their  study  of  the 
situation;  it  being  apparent  that  a  further  compilation 
and  publication  will  be  necessary  if  the  Legislature  shall 
act  favorably  on  the  work  of  the  Commission.  The  Board 
has,  therefore,  gone  carefully  through  the  compiled  laws 
of  Utah  and  the  session  laws  of  1909  and  1911,  and  taken 
therefrom   and  bound   in  typewritten  form  all  provisions 


affecting  taxation,  duties  of  officers  in  relation  thereto, 
bonding  powers  of  the  various  legal  subdivisions  of  the 
State,  etc.,  copies  of  which  may  be  found  at  the  office  of 
the  Commission. 

Neithet"  did  we  understand  that  it  was  our  duty  to 
recommend  changes  in  the  tax  system  of  tne  State  that 
would  either  increase  or  decrease  the  amount  of  taxes,  in 
the  aggregate,  to  be  levied  and  collected  within  the  State. 
But  we  did  understand  it  to  be  our  duty  to  make  careful 
investigation  of  the  tax  system  of  this  and  other  states 
with  a  view  of  securing  a  more  equitable  distribution  of 
the  burdens  of  taxation.  With  that  end  in  view  we  have 
by  personal  letters  .to  the  county  officials  of  the  various 
counties  of  the  State,  and  through  the  columns  of  the 
public  press,  solicited  suggestions  for  the  improvement  of 
our  system  of  taxation,  or  criticism  of  the  present  methods 
employed,  neither  of  which,  however,  has  been  forthcom- 
ing in  such  a  way  as  to  be  of  practical  benefit  to  the  Com- 
mission. 

We  have  also  visited  the  various  counties  of  the  State, 
and  by  the  inspection  of  records,  and  by  inquiry  of  county 
officials  and  citizens,  have  made  a  careful  investigation  of 
taxation  methods  and  conditions  as  they  now  exist.  We 
have  secured  from  the  various  states  of  the  Union  copies 
of  their  revenue  laws,  reports  of  the  state  tax  commissions; 
and  of  commissions  created  in  other  states  for  purposes 
identical  with  those  which  prompted  the  creation  of  this 
Board.  We  have  visited  the  states  of  California,  Oregon, 
Washington  and  Idaho,  in  each  of  which  we  met  members 
of  the  state  tax  comjnissions  or  boards  of  equalization, 
besides  many  county  officials.  In  every  instance  we  were 
met  with  every  courtesy  and  consideration,  and  furnished 
with  much  information  of  interest  and  value. 

The  members  of  the  Commission  attended  as  dele- 
gates from  Utah  the  sixth  annual  conference  of  the 
National  Tax  Association  at  Des  Moines,  Iowa,  September 


3-5  inclusive,  1912,  and"  heard  and  considered  the  papers 
and  addresses  there  delivered.  We  have  also  studied  the 
proceedings  of  each  of  the  five  preceding  conferences  of 
the  above  association,  and  the  many  reports  of  state  tax 
commissions,  revision  commissions,  etc.,  that  have  come 
into  our  hands  as  above  recited. 


SCOPE  OF  THIS  REPORT. 

It  is  not  our  purpose  in  this  preliminary  report  to 
present  a  complete  code  of  revenue  laws,  but  rather  to 
suggest  some  of  the  more  radical  changes  in  the  present 
laws  that  we  now  have  under  consideration,  our  purpose 
being  to  awaken  public  interest  and  discussion.  The  sug- 
gestions which  we  make  are  all  subject  to  revision  before 
we  make  our  final  report  to  the  Legislature,  and  the 
Board  invites,  and  will  welcome,  criticism  or  suggestion 
from  any  officer  charged  with  the  duty  of  levying  or  col- 
lecting taxes,  or  from  any  taxpayer,  individual  or  corpor- 
ate, within  the  State. 

While  our  revenue  laws  are  greatly  in  need  of 
revision,  that  they  are  inequitable,  unjust  and  in  some 
instances,  contradictory  is  conceded  by  every  one  with 
knowledge  of  the  subject,  they  nevertheless  contain  many 
admirable  provisions,  some  of  which  are  now  being  adopted 
by  other  states.'  The  Board  will  not  recommend  any 
change  simply  for  the  sake  of  change,  but  on  the  contrary 
will  seek  to  retain  all  of  the  present  laws  so  far  as  pos- 
sible, recommending  changes  and  additions  only  where  it 
seems  to  be  essential. 


STATE  BOARD  OF  EQUALIZATION. 

A  great  many  of  the  states  now  have  permanent  tax 
commissions.  In  some  states  they  supplant  the  old  board 
of  equalization,    in   others   they   are   in   addition   thereto, 


and  have  certain  defined  duties.  In  this  State  we  have 
thought  it  advisable  to  retain  the  State  Board  of  Equaliza- 
tion, without  any  change  in  its  name,  or  the  number  of  its 
members,  or  in  the  manner  of  their  selection,  but  to  recom- 
mend greatly  enlarged  duties  and  responsibilities,  giving 
it  the  duties  usually  delegated  to  a  tax  commission,  plac- 
ing the  general  supervision  of  county  assessors  in  their 
hands,  providing  for  a  system  of  appeals  to  that  board  in 
all  matters  affecting  the  individual  tax  payer,  and  so  in- 
creasing the  compensation  of  the  members  that  competent 
men  can  afford  to  give  their  entire  time  to  the  work  of 
the  board. 

The  board  of  equalization,  as  at  present  empowered, 
assesses  inter-county  railroads  and  other  inter-county 
public  utility  corporations,  determines  their  franchise 
values  and  also  equalizes  the  assessed  value  of  property 
between  the  different  counties  and  between  the  different 
classes  of  property  throughout  the  State.  The  board  has, 
however,  no  power  to  equalize  assessments,  as  between 
individual  taxpayers  or  to  compel  county  assessors  to 
revise  individual  assessments,  nor  may  the  board  require 
any  standard  of  efficiency  or  prescribe  rules  or  methods, 
to  be  followed  by  the  county  assessors.  There  is  no 
method  of  appeal  from  the  individual  taxpayer  to  tne 
board. 

We  recommend  that  the  following  duties  and  powers 
be  added  to  those  already  imposed  by  law  on  this  board: 

A.  That  the  board  have  general  supervision  over 
county  assessors,  such  as  power  to  prescribe  rules  of 
work;  to  insist  upon  uniform  methods 'of  assessments;  to 
exact  standards  of  efficiency  and  to  institute  proceedings 
for  removal  of  county  assessors  in  case  of  dereliction  of 
duty  or  poor  or  inefficient  work. 

B.  That  there  should  be  a  method  by  which  the  indi- 
vidual taxpayer  could  either  appeal  to  the  board  direct  or 


10 

through  a  board  of  county  officials,  in  all  matters  affect- 
ing the  individual  taxpayer. 

C.  That  the  board  should  have  the  right  to  equalize 
as  between  individuals  within  a  county  or  to  assess  any 
individual  or  corporation  upon  their  initiative  within  the 
county,  or  to  order  a  re-assessment  of  the  property,  in 
part,  or  whole,  within  the  county,  or  within  any  portion  of 
the  county. 

The  reason  for  these  recommendations  will  be  obvious 
when  the  important  work,  which  is  necessary  for  the 
board  to  do  is  brought  to  the  attention  of  the  taxpayers. 
There  are  individual  assessments  in  the  State  amounting 
to  $500,000.00,  which  the  county  assessor  values  and 
which  are  not  brought  to  the  attention  of  the  county  com- 
missioners, unless  on  petition  of  the  individuals  concerned. 
Further,  the  question  of  what  value  is,  is  left  to  the  indi- 
vidual judgment  of  each  county  assessor  and  there  is  no 
method  at  present  by  which  a  uniform  value,  respecting 
any  class  of  property  may  be  attained  within  the  State. 

Under  the  laws  of  Utah,  and  under  the  methods  in 
vogue,  equalization  by  the  State  Board  of  Equalization  is 
and  can  *be  n6thing  but  a  farce.  Let  us  recite  a  case  In 
point.  The  county  commissioners  of  one  of  the  important 
counties  in  the  State,  acting  under  the  spur  of  the  State 
Board  of  Equalization,  and  after  they  had  themselves  as 
a  county  board  of  equalization  passed  upon  the  county 
assessment  roll  for  that  year,  made  a  careful  investiga- 
tion of  the  proportion  of  the  assessed  value  to  true  value 
of  real  estate  with  their  improvements  in  their  county, 
with  the  result  that  they  found  a  variance  from  as  low  as 
9  per  cent  to  as  high  as  70  per  cent.  Now,  suppose  the 
State  Board  of  Equalization,  finding  the  real  estate  of  that 
county  assessed  below  the  average  of  other  counties  of  the 
States,  or  below  other  classes  of  property,  should  order  a 
raise  by  a  percentage  of  the  whole  (the  only  way  in  which 
such  an  order  could  be  made,  under  the  law)  :  the  result 


11 

would  be  that  the  property  assessed  at  70  per  cent  of  its 
value,  being  already  more  than  seven  times  higher  than 
the  property  assessed  at  9  per  cent  of  its  value,  would 
suffer  by  the  execution  of  the  order  of  the  board,  more 
than  seven  times  as  much  raise  as  the  property  assessed 
at  only  9  per  cent  of  its  value,  thus  making  more  inequit- 
able the  iniquitous  assessment  already  made.  And  this  is 
by  no  means  an  isolated  case. 

Our  State  sends  out  its  twenty-seven  assessors,  and 
innumerable  deputies,  each  a  law  unto  himself,  without 
system  or  method  or  instruction,  under  a  law  demanding 
assessment  at  full  value,  yet  recognizing  in  practice,  and 
even  in  statutory  enactments,  the  pernicious  system  of 
undervaluation  that  has  so  long  and  so  universally 
obtained.  Such  a  system  cannot  fail  to  produce  results 
that  are  incongruous,  inconsistent,  and  inequitable,  and  the 
wonder  is  that  they  are  not  worse  than  they  are.  To 
correct  the  inequalities  thus  brought  into  existence,  there 
is  provided  the  various  county  boards  of  equalization  and  the 
State  Board  of  Equalization,  machinery  that  would  seem 
to  the  uninitiated  ample  to  accomplish  a  fair  and  equitable 
equalization  of  the  property  of  the  state;  but  experience 
has  demonstrated,  as  shown  herein,  that  it  does  npt  do  so. 
We  believe  that  the  whole  theory  is  wrong,  and  that  in- 
stead of  allowing  the  errors  and  inaccuracies,  so  abund- 
antly shown  on  every  assessment  roll  in  the  State,  to  come 
into  existence,  and  then  seek  their  correction  by  means  of 
.equalization,  there  should  be  provided  a  system  of  super- 
vision of  assessors,  rules  and  plans  under  which  the 
assessment  work  shall  be  conducted,  and  a  force  of  compe- 
tent and  experienced  men  to  do  it,  so  that  the  original 
assessments  shall  be  fair  and  right.  In  other  words,  we 
believe  that  "an  ounce  of  prevention  is  worth  a  pound  of 
cure." 

It  is  universally  recognized  that  the  greatest  need  of 
any  state  respecting  taxation,  is  to  obtain  a  fair  and 
equitable  assessment.     A  central  body  of  State  officials, 


12 

with  power  sufficient  to  enforce  such  an  assessment  is 
absolutely  necessary.  We  desire  to  emphasize  as  the  first 
and  most  important  change  necessary  in  our  revenue  laws, 
the  creation  of  this  central  tax  commission,  with  power 
to  enforce  all  statutes  and  rules  for  the  assessment  of 
property  and  the  levy  and  collection  of  taxes,  and  it  seems 
logical  to  place  that  power  with  the  State  Board  of  Equal- 
ization. 


THE  ASSESSOR. 

One  of  the  fundamentals  in  any  equitable  system  of 
taxation  is  that  the  assessment  *  should  be  uniform.  All 
the  property,  except  that  exempted  by  law,  belonging  to 
each  individual  taxpayer  should  be  assessed  and  be 
assessed  at  its  full  value,  unless  a  percentage  value  for 
assessment  purposes  is  established  by  law,  and  in  that 
event,  each  taxpayer's  property  should  be  assessed  at  the 
same  proportionate  value.  Each  taxpayer  who  evaaes  any 
part  of  his  just  proportion  of  the  public  taxes,  places  an 
additional  burden  on  the  shoulders  of  his  neighbors,  and 
every  assessor,  who  from  ignorance,  carelessness  or  the 
desire  to  favor  a  friend,  allows  property  to  escape  assess- 
ment, or  assesses  it  at  loo  low  a  value,  commits  two 
wrongs;  he  allows  one  man  to  escape  his  full  share  of  the 
public  burden,  and  at  the  same  time  shifts  it  to  others 
who  are  already  paying  their  full  share. 

The  office  of  assessor  is  one  of  the  most  important  in 
the  county.  If  he  does  his  work  carefully,  thoroughly  and 
honestly  the  taxpayers  in  his  district  will  not  have  much 
to  complain  of,  under  any  system  of  taxation,  no  matter 
what  the  other  officers  connected  with  the  revenue  sys- 
tem may,  or  may  not  do.  If,  on  the  contrary,  the  assessor 
is  incompetent,  negligent  or  dishonest,  his  constiiuents 
will  be  unfairly  and  unequally  taxed  notwithstandmg  the 
utmost  endeavors  of  all  the  other  officers  having  to  do 
with  the  levying  and  collecting  of  the  taxes. 


13 

In  the  public  estimation  the  office  of  assessor  has 
ranked  too  low.  In  nominating  conventions  it  is  usually 
the  last  place  filled,  and  the  nominee  is  more  likely  to  be 
chosen  because  of  the  particular  section  from  which  he 
comes,  or  on  account  of  his  past  services  to  the  party,  or 
some  political  exigency  of  that  nature,  rather  than  because 
of  his  especial  fitness  for  the  office.  That  under  the  cir- 
cumstances the  State  has  secured  the  services  of  a  band 
of  assessors  of  so  high  a  general  average  of  mental,  moral 
and  business  equipment,  we  consider  due  more  to  good 
luck  than  to  good  management. 

The  best  man  in  the  county  is  none  too  good  for  an 
assessor,  and  the  dignity  of  the  office  and  the  salary 
attached  thereto  should  be  such  that  he  will  be  willing  to 
accept  it. 

Under  the  present  system  the  newly  elected  assessor, 
taking  charge  of  his  office  on  the  first  of  the  year,  has 
no  opportunity  to  become ,  acquainted  with  the  records  of 
his  office,  or  even  the  routine  duties  connected  with  it, 
before  he  is  compelled  to  start  in  on  his  most  important 
duties,  without  experience  and  without  time  for  study 
and  to  adjust  himself  to  his  position.  It  is  impossible  for 
even  the  most  competent  man  to  do  himself  or  the  people 
of  his  county  justice  under  such  conditions. 

In  this  connection,  we  also  desire  to  suggest  that  in 
our  opinion  the  office  of  county  assessor  should  be  for  a 
term  of  four  years  instead  of  two  as  now  provided  by  law. 
It  now  requires  at  least  one  year  for  a  new  assessor  to 
become  reasonably  familiar  with  the  duties  of  his  office. 
During  the  second  year  he  is  naturally  very  much  handi- 
capped by  his  desire  and  efforts  to  secure  his  renomina- 
tion  and  election,  or  by  the  fact  that  his  energy  and  atten- 
tion are  largely  directed  to  the  consideration  of  his  future 
personal  business  affairs,  also  by  the  further  fact  that, 
knowing  of  the  near  approach  of  the  termination  of  his 
official  position,  he  feels  that  it  is  not  worth  his  while  to 
make  necessary  changes  and  improvements  in  the  assess- 
ment work  of  his  county. 


14 

Probably  the  best  way  to  secure  a  uniform  assessment 
throughout  the  State  (and  under  our  system  of  raising  the 
State  revenue  by  direct  taxation,  this  is  necessary)  would 
be  to  place  the  assessment  for  the  entire  State  in  the  hands 
of  a  State  assessor  or  a  State  board  of  assessment,  with 
power  of  appointment  and  removal  of  the  assessors  for 
the  several . counties.  The  objection  to  this  system  is  that 
it  takes,  or  seems  to  take,  from  the  people  of  the  several 
counties  a  measure  of  their  right  to  "home  rule"  and  we 
accordingly  do  not  insist  upon  it,  and  will  probably  not 
include  such  a  provision  in  the  bill  to  be  reported  to  the 
Legislature  when  we  make  our  final  report. 

We  do  however  make  the  following  recommendations : 

1st:  The  salary  of  the  assessors  of  the  several  coun- 
ties should  be  materially  increased. 

2nd:  The  terms  of  the  county  assessors  as  elected 
this  fall  should  be  extended  to  June  30,  1915,  and  assessors 
elected  in  1914  should  assume,  their  duties  on  July  1st, 
1915,  and  hold  office  for  four  years  from  that  date,  and 
all  subsequent  terms  should  begin  on  July  1st  and  close 
on  June  30th. 

3rd:  The  assessor  should  be  placed  under  some  cen- 
tral State  authority,  preferably,  under  our  system,  the 
State  Board  of  Equalization,  which  should  have  power  to 
direct  and  control  the  assessor  in  all  matters  relating  to 
the  securing  of  a  full  and  uniform  assessment. 


ASSESSMENT  AT  FULL  VALUE. 

It  is  conceded  by  tax  experts  generally  that  all  prop- 
erty ought  to  be  assessed  at  its  full  cash  value.  This  for 
two  reasons: 

First:  That  it  leads  to  a  more  equal  ana  equitable 
assessment.  It  is  comparatively  easy  to  ascertain  the 
actual  cash  value  of  a  given  property,  but  when  assessors 


15 

are  allowed  to  assess  property  at  such  varying  percentages 
of  actual  value  as  their  judgment  or  interest  prescribes, 
the  w^onder  is,  not  that  taxes  bear  unequally  upon  our 
citizens,  but  that  they  are  not  still  more  unequal. 

Second:  A  high  valuation  means  a  low  levy  to  produce 
the  same  amount  of  revenue.  A  low  rate  of  taxation  is 
desirable  from  any  point  of  view. 

It  is  true  that  the  laws  now  in  force  require  the 
assessment  of  property  at  its  actual  cash  value,  and  define 
what  is  meant  by  that  term:.  "The  amount  at  which  the 
property  would  be  taken  in  payment  of  a  just  debt  due  from 
a  solvent  debtor"  but  the  law  has  been  evaded  and^set  at 
naught  by  every  officer  in  the  State  charged  in  any  man- 
ner with  duties  relating  to  the  public  revenue.  Even  the 
Legislature  in  providing  for  the  permanent  levies  has 
recognized  and  tacitly  consented  to  assessments  at  a  frac- 
tion of  the  actual  cash  values,  by  making  these  levies 
from  three  to  four  times  as  high  as  would  be  necessary 
were  all  the  property  in  the  state  assessed  as  provided  by 
law. 

We  have  visited  every  county  in  the  State  with  a  view 
of  determining  the  percentage  of  actual  value  at  which 
property  is  assessed,  and  have  made  careful  and  pains- 
taking examination  of  the  records;  also  consulted  with 
most  of  the  county  officials  who  have  to  do  with  the  levy- 
ing and  collecting  of  taxes.  The  result  of  our  investiga- 
tion, covering  real  estate  and  improvements  only,  and 
compiled  by  averaging  from  fifty  to  one  hundred  trans- 
fers in  each  county,  showing,  as  far  as  could  possibly  be 
ascertained,  bona  fide  considerations,  is  shown  in  the  fol- 
lowing table: 


16 


County    Section  Property   Town  &  City 

Beaver   28  per  cent.     32  per 

Box  Elder  22    "         25 

Cache   25    "         21 

44 
24 
32 
37 
29 
32 
45 
50 
32 
37 
34 
37 
37. 
38 
41 
29 
45 
39 
32 
41 
35 
43 
55 
36 


Lots 
cent. 


Carbon   .    .  .  .  . 

..   21 

Davis 

•.  .   27 

Emery 

..   24 

Garfield   .    .  .  . 

..    35 

Grand     . 

..    18 

Iron     

..    38 

Juab 

..   26 

Kane     

..    56 

Millard    .     ... 

..   23 

Morgan    .    .  .  . 

..   37 

Piute    

..   44 

Rich    

..   37 

Salt  Lake    .  .  . 

..   26 

San   Juan*    .  . 

.  . 

San    Pete    .  .  . 

..   27 

Sevier 

..   24 

Summit    .    . .  . 

..   35 

Tooele 

..   26 

Uintah    .     .  . . 

..   32 

Utah    

..   24 

Wasatch    .     .  . 

..   33 

Washington  . 

..   44 

Wayne    . 

.  . 

Weber    .    .  . . . 

..   24 

We  do  hot  presume  to  say  that  the  information  thus 
obtained  is  absolutely  correct;  but  it  is,  we  believe,  the 
best  obtainable,  and  is  based  upon  actual  transfers  from 
vwhich    had    been    eliminated    everything    that    showed    a 


*In  San  Juan  County  practically  *all  section  property  is  held 
under  certificate  of  sale  from  the  State  and  is  not  yet  patented,  hence 
can  be  assessed  only  to  the  amount  of  the  equity  held  by  the  pur- 
chaser, or  the  amount  that  he  has  paid  to  the  State  as  part  of  the 
purchase  price. 


17 

nominal  or  fictitious  consideration  and  after  the  several 
items  used  had  been  submitted  to  county  officials  for  ap- 
proval. 

Taking  the  above  table  as  a  standard,  we  find  that 
all  classes  of  live  stock,  and  especially  cattle  and  horses, 
are  assessed  high,  provided  that  the  full  number  is  listed, 
but  we  find  that  such  is  not  the  case,  and  in  our  judgment 
this  class  of  property  as  a  whole  is  assessed  upon  about 
the  same  basis  as  real  estate. 

In  fact,  we  believe  that  with  the  exception  of  intangi- 
ble personal  property,  treated  specially  herein  under  the 
subdivision  "Money  and  Credits,"  the  various  county  as- 
sessors have  been  as  fair  and  equitable  in  their  assess- 
ments as  between  the  various  classes  of  property  as 
possible,  although  as  between  individual  assessments  with- 
in the  counties,  and  the  total  assessments  of  the  various 
counties,  the  discrepancy  is  wide. 

Undoubtely  the  chief  reason  for  low  assessments  by 
County  Assessors  is  that  the  state  derives  its  revenue  by 
means  of  direct  taxation,  and  the  assessors  in  a  desire  to 
prevent  their  counties  from  contributing  unduly  to  the 
coffers  of  the  state,  have  each  attempted  to  assess  the 
property  of  his  county  at  a  percentage  as  low,  or  a  little 
lower  than  that  of  the  other  counties.  Another  reason 
for  low  assessments  undoubtedly  has  been  the  absence 
under  our  laws  of  any  central  authority  with  power  to 
oversee,  direct  or  control  in  any  manner  the  assessments 
in  the  several  counties. 

This  is  not  a  condition  perculiar  to  Utah,  but  has  been 
the  experience  of  every  state  collecting  its  state  revenue 
by  direct  taxation. 

As  a  remedy  for  this  condition  we  submit  the  sugges- 
tion that  the  total  tax  levy  for  all  purposes  (excluding  only 


2-TR 


18 


special  assessments)  should  be  limited  to  fifteen  mills  ap- 
portioned as  follows. 


CITIES 

_    TOWNS 

COUNTRY 

Pres- 
ent 

Pro- 
posed 

Pres- 
ent 

Pro- 
posed 

Pres- 
ent 

Pro- 
posed 

State 

General     . .  ■ 

3.0 

.5 

5.0 

4.0 

1     1.0 

2 

5.0 
5.0 
5.0 
8.0 

1.5 

1.0 

.2 

2.0 

1.5 

1       .4 

.1 

5.2 
3.0 

4.5 
3.0 

.5 

5.0 
4.0 

1    1.0 

.2 

10.0 

10.0 

5.0 

1.5 

1.0 

.2 

2.0 

1.5 

.4 

.1 

3.0 
3.5 
1.8 

4.5 

3.0 

.5 

5.0 

4.0 

1.0 

.2 

10.0 
5.0 

1    T 

1 

State   School 

1  0 

High  School    

2 

County 

General    

.  County  School    

Pauper    

Exhibitions     

2.0 

1.5 

.4 

1 

City 

Contingent     

Streets  

Sewers     

Schools    

Town 

General    

District  School  ....... 

County  High  School.. 
Country 

District  School  

County  High  School  . . 

40 
1.8 

Totals    

1  41.28 

15.0 

43.2 

15.0 

42.2 

12.5 

Reserving,  of  course,  to  the  taxpayers  of  each  particu- 
lar taxing  district,  the  right  to  vote  additional  levies  when- 
ever in  the  opinion  of  the  taxpayers  of  that  particular  dis- 
trict such  additional  levies  are  necessary  or  desirable. 


On  an  assessment  at  full  cash  value  the  levies  herein 
suggested  would  produce  at  least  as  much  revenue  as  is 
now  being  collected  on  the  low  valuations  by  the  high  lev- 
ies, and  at  the  same  time  the  several  counties  would  be 
compelled  to  see  that  their  property  was  assessed  at  full 
cash  value,  in  order  that  the  levies  allowed  may  produce 
revenue  sufficient  for  county  and  school  purposes. 


19 

Assessment  at  full  cash  value  will  mean  that  the  total 
valuation  will  be  at  least  three  times  as  large  as  at  present, 
so  that  the  proposed  maximum  levies  contemplated  in  the 
foregoing  table  are  ample,  and  are  so  calculated  as  to 
place  in  each  fiind  approximately  the  same  amount  as 
under  the  present  system.  It  should  be  observed  that  the 
levies  provided  herein  are  maximum  levies,  and  we  believe 
that  with  a  full  and  fair  assessment,  the  levies  will  be 
much  lower  than  those  herein  proposed  to  be  allowed.  In 
fact  we  were  at  first  greatly  inclined  to  fix  the  totals  of 
maximum  levies  at  a  much  lower  figure,  but  after  more 
mature  deliberation  we  believe  that  it  is  better  to  err  on 
the  the  side  of  too  liberal  levies  than  too  niggardly,  and 
particularly  so  in  regard  to  the  proper  support  of  the 
public  schools.  If  experience  shall  prove  that  the  max- 
imum limits  are  set  too  high,  it  will  be  an  easy  matter  for 
the  legislature  to  lower  them  when  that  fact  shall  be  dem- 
onstrated. 

We  wish  to  emphasize  that  the  assessment  of  property 
under  this  plan  will  not.  increase  either  the  taxes  or  the 
power  of  the  various  officials  to  levy  and  collect  more 
taxes.  The  State  of  West  Virginia  adopted  the  plan  above 
suggested,  with  the  result  that  the  average  rate  through- 
out the  State  was  reduced  from  2IV2  mills  to  8V^  mills  in 
four  years,  and  yet  without  crippling  or  injuring  the  pub- 
lic institutions.  The  following  extract  from  a  paper  read 
at  the  National  Tax  Conference  in  Milwaukee  in  1910  by 
Mr.  T.  C.  Townsend,  briefly  summarizes  the  changed  con- 
ditions in  that  State: 

"I  do  not  wish  to  be  understood  as  saying  that  in 
the  aggregate  we  are  collecting  less  taxes  by  reason  of  the 
revision  of  the  tax  laws.  The  converse  is  true.  We  are 
collecting  more  money  for  every  purpose  in  the  State  of 
West  Virginia  than  ever  before,  but  the  tax  burdens  are 
more  equally  distributed,  with  the  result  that  nine-tenths 
of  the  tax-payers  are  contributing  less  since  the  revision  of 
the  tax  laws. 


20 

"West  Virginia  is  a  rich  and  progressive  common- 
wealth. We  need  more  money  for  governmental  purposes 
than  at  any  time  in  its  history.  The  States's  public  insti- 
tutions are  in  better  condition  than  ever  before;  the  length 
of  the  free  school  term  has  been  increased,  and  our  citizens 
are  prosperous  and  happy  under  a  tax  system  rigidly  en- 
forced, and  the  taxes  economically  expended." 

Kansas  has  likewise  adopted  the  plan  of  fixing  by  law 
low  maximum  levies  and  of  assessing  at  full  value,  and 
has  likewise  reduced  the  total  of  all  levies  in  the  state  to  a 
slightly  lower  figure  than  has  West  Virginia. 

The  inter-county  public  utility  corporations  of  the 
state  seem  to  have  been  assessed  by  the  State  Board  of 
Equalization  at  about  331/3  per  cent  of  their  physical  value, 
or  cost  of  reproduction,  and,  at  least  so  far  as  railroads 
are  concerned,  at  a  valuation  that  taxes  them  higher 
than  the  same  roads  are  taxed  in  other  states  through 
which  they  run,  as  shown  by  the  following  table: 


0.  S.  L. 

U.  P. 

D.&R.G.         S.P.Lil,&S.L 

Mills 

Tax 

Average       Tax 
Rat«         per 
Hills        Riles 

Average 
Rite 
Mills 

Tax 
MiTe 

AverMsfe 
Rate 
Mills 

Tax 

Utah   

Wyoming    .  .  . 

30.72 

,  10.33 

19.95 

21.76 

12.50 

656.61 
243.18 
863.64 
435.78 
418.70 

28.59|  574.55 
11  181  544.48 

i 

31. 

459.60 

25.65 

294.74 

Montana    .... 

• 1 

1 

Oregon 

Kansas 

1 
1 

8.23|  336.31 

42,851  605.44 

31.49|  436.29 

......I 

Nebraska  .    . . 

Colorado 

Z7, 

361.20 

Nevada 

32.60 
21.58 

333  00 

California 

1 
1 

227.00 

543758 

"24r47f499741 

"34." 

410.40 

Average  . . . 

19.05 

26.61 

284.91 

The  showing  thus  made  is  corroborated  by  the  follow- 
ing extract  from  an  address  delivered  by  Mr.  Robert  H. 
Shields,  of  the  Michigan  State  Board  of  Assessors,  before 


21 

the  Fourth  Annual  Conference  of  the  National  Tax  Asso- 
ciation at  Milwaukee  in  1910: 

"A  casual  study  of  the  revenue  laws  of  the  various 
States  of  the  Union  reveals  a  wide  divergence  both  in 
taxation  principles  and  in  their  application,  resulting  in 
a  corresponding  difference  in  tax  burdens  that  is  well- 
nigh  startling.  For  instance,  the  resultant  tax  on  railroad 
property  varies  from  $148.00  per  mile  in  Indian  Territory 
to  $1,936.00  per  mile  in  New  Jersey  (1908),  the  average 
tax  per  mile  for  all  States  being  $382.00,  with  only  ten 
States  approaching  even  approximately  the  average,  the 
rate  for  Michigan  being  $396.00.  This  wide  divergency  in 
results  cannot  be  entirely  explained  away  by  any  theory  of 
value ;  it  is  the  inevitable  result  of  the  application  of  differ- 
ent theories,  or  methods,  of  taxation  by  the  taxing  bodies 
in  the  different  States,  and  calls  for  a  remedy." 

This  very  able  paper  by  Mr.  Shields  also  very  strongly 
supports  the  position  taken  by  this  Board  as  shown  on 
page  34  of  this  report,  recommending  that  the  assessing 
power  be  given  authority  to  take  into  consideration  a  wide 
range  of  facts  and  elements  of  value  in  the  assessment 
of  public  service  corporations. 


MONEYS  AND   CREDITS. 

The  amount  of  taxes  paid  on  intangible  personal  prop- 
erty in  this  State  is  so  small  that  the  State  would  lose  no 
appreciable  part  of  its  income  by  abandoning  all  attempt 
to  collect  taxes  on  this  class  of  property.  We  regret  that 
we  are  unable  to  state  the  exact  amount  of  the  taxes 
so  collected,  but  the  accounts  of  the  several  counties  are 
so  kept  that  in  most  of  them  it  would  be  necessary  to  ex- 
amine the  assesment  of  each  individual  taxpayer  in  order 


•      22 

to  determine  the  exact  amount,  and  we  have  had  neither 
the  time  nor  money  at  our  disposal  to  make  such  an  ex- 
amination. 

A  great  many  of  the  states  have  abandoned  all  at- 
tempt to  collect  taxes  from  this  class  of  personal  property. 
Other  states  are  doing  as  we  have  done,  and  have  taken 
such  taxes  as  are  voluntarily  paid  by  its  excessively  con- 
scientious citizens,  and  a  few  are  making  a  determined 
effort  to  compel  the  holders  of  this  property  to  pay  their 
fair  proportion  of  the  taxes. 

We  believe  there  is  no  reason  why  the  possessors  of 
money  and  interest-bearing  securities  ought  not  to  be  taxed 
as  heavily  as  the  owner  of  the  store  or  the  farm,  so  far  as 
the  equities  go,  but  the  fact  remains  that  we  are  not,  and 
never  have  been,  successful  in  collecting  one  per  cent  of  the 
amount  that  should  have  been  collected  from  this  source. 

The  tax  officials  of  the  state  are  not  to  blame  for 
this  condition,  it  is  not  peculiar  to  this  state,  but  is  the 
universal  experience  of  every  state  that  has  tried  to  col- 
lect revenue  from  this  source. 

The  question  is  therefore  not  so  much  one  of  ethics 
as  of  expediency.  If  it  is  desired  to  continue  to  attempt 
to  collect  taxes  from  this  class  of  property  we  are  disposed 
to  recommend  the  following: 

Classify  money  and  credits  and  tax  them  at  a  low 
rate,  not  less  than  three  mills,  or  more  than  five.  Require 
from  each  taxpayer  a  statement  in  writing  listing  his  cred- 
its; quadruple  assessment  for  any  omitted,  and  deny  the 
aid  of  the  courts  for  collection  of  all  credits,  which,  being 
liable  for  any  taxes  have  failed  to  pay  them. 

We  are  aware  that  the  above  is  a  compromise  measure, 
and  not  to  be  defended  on  any  other  ground  than  that  it 
will  probably  produce  some  revenue  from  a  source  that  is 


23 

now  barren.  It  is  also  in  the  nature  of  an  experiment, 
which  may  or  may  not  be  successful,  but,  unless  some- 
thing better  is  suggested,  it  is  an  experiment  that  we  would 
be  glad  to  see  tried,  before  abandoning  all  attempt  to  make 
that  class  of  citizens  best  able  to  contribute  to  the  support 
of  the  state,  pay  at  least  a  portion  of  their  just  share  of 
the  taxes. 


INHERITANCE   TAX. 

While  our  present  inheritance  tax  law  has  produced 
considerable  revenue  to  the  state,  and  while,  so  far  as  large 
estates  are  concerned,  it  is  probably  not  oppressive,  we  be- 
lieve that  in  estates  of  moderate  amount,  where  the  prop- 
erty goes  to  immediate  relatives,  the  rate  is  too  high,  and 
that  the  result  is  that  the  holders  of  such  estates  fre- 
quently so  dispose  of  their  estates  in  anticipation  of  death, 
as  to  deprive  the  state  of  any  revenue  whatever  when  the 
estate  is  probated. 

Our  present  ^law  is  unclassified  and  non-progressive, 
but  provides  for  a  straight  five  per  cent  tax  on  all  amounts 
over  ten  thousand  dollars,  whether  the  beneficiary  is  the 
widow  of  the  deceased,  or  a  non-resident  alien  of  no  blood 
relationship. 

Tax  experts  and  political  economists  unqualifiedly 
condemn  the  principle  of  taxing  the  estates  of  non-resi- 
dents on  personal  property  not  situate  within  the  state. 
Unquestionably  corporate  stock  is  such  property,  and  in 
case  of  the  death  of  a  resident  of  this  state,  all  corporate 
stock  owned  by  him,  no  matter  where  the  corporation  is 
organized,  or  where  it  does  business,  pays  an  inheritance 
tax  to  this  state.  The  same  is  true  of  all  other  states  col- 
lecting an  inheritance  tax,  and  thus  property  of  this  na- 
ture always  pays  two  taxes,  and  cases  can  arise  where  it 
would  pay  the  tax  three  or  even  four  times. 


24 

These  considerations  have  led  the  National  Tax  Asso- 
ciation, composed  of  tax  experts  from  every  state,  and  from 
Canada,  to  prepare  and  recommend  a  model  law,  which 
makes  no  attempt  to  collect  taxes  from  such  estates.  In 
other  words,  the  estates  of  non-residents  pay  taxes  only  on 
real  estate  and  personal  property  situate  within  this  state 
at  the  time  of  the  death. 

A  number  of  states,  notably  New  York,  which  have 
recently  remodeled  their  inheritance  tax  laws,  have  adopt- 
ed the  model  law,  and  have  ceased  to  attempt  to  collect 
from  such  estates. 

Other  states  have  sought  to  avoid  the  double  taxation 
involved,  by  a  sort  of  reciprocity  or  retaliatory  measure 
which  provides  that  such  taxes  are  collected  only  from  the 
estates  of  residents  of  such  states  as  collect  them  from 
citizens  of  other  states. 

A  large  number  of  the  states  however  continue,  as  in 
Utah,  to  demand  and  collect  the  tax  on  shares  of  stock  in 
domestic  corporations  no  matter  where  the  shares  may  be, 
or  where  the  deceased  may  have  resided  at  the  time  of  his 
death. 

Utah  is  not  yet  a  state  holding  a  large  amount  of  capi- 
tal invested  in  other  states.  She  is  a  new,  growing  and 
developing  empire  and  the  resources  of  her  citizens  are 
practically  all  invested  within  her  borders,  therefore  in 
giving  up  this  source  of  revenue  it  must  be  understood  that 
she  is  getting  nothing  in  return,  even  should  all  the  other 
states  adopt  the  model  law. 

Whether,  under  the  circumstances,  the  policy  of  the 
state  in  that  respect  should  be  changed,  should  be  deter- 
mined by  the  people  of  the  state,  and  by  their  representa- 
tives in  the  State  Legislature  and  not  by  this  Commis- 
sion. Ethical  considerations  probably  demand  that  we 
should  cease  seeking  revenue  from  this  source.     Practical 


25 

considerations,  and  the  relative  situation  of  this  state  in  the 
financial  world,  are  strong  incentives  to  us  to  continue 
to  collect  these  taxes. 

In  our  judgment  there  is  no  question  but  the  tax 
should  be  classified,  according  to  the  degree  of  relation- 
ship of  the  heir  to  the  deceased,  and  progressive  accord- 
ing to  the  amount  received  by  him  from  the  estate. 

The  accompanying  table  shows  a  classification,  which 
while  it  differs  from  that  of  any  other  state,  embodies 
what  we  believe  to  be  the  best  from  a  number  of  them, 
and  we  recommend  it. 


Classification  Accord- 
ing to  Relationship 

PROPERTY 
EXtMPT 

APPLICATION  OF  RATES  TO  VALCK  OF  E8TATB 

Excess 

to 
$25,000 

$25,000 

to 
$50,000 

$50,000 

to 
$100,000 

$100,000 

to 
$500,000 

Over 

$500,000 

Widow,  Minor  child,   (lawful, 
mutually     acknowledged     o  r 
legally   adopted). 

Husband  ;  Adult  child  ;  Minor 
grandchild ;    Widow    of    son, 
not  remarried. 

$10,000 
5,000 

per  cent 
1 

percent 

2 

percent 

3 

percent 

4 

percent 

.5 

Brother,  Sister  or  descendant 
of    either;    Father;    Mother; 
Wife    of    Son;    Husband    of 
Daughter;  Adult  Grandchild. 

2,000 

.    2 

4 

6 

8 

10 

Uncle ;    Aunt    or    descendant 
of    either;     Grandfather ; 
Grandmother. 

1,000 

3 

6 

9 

12 

15 

Grand  Uncle ;  Grand  Aunt  or 
descendant  of  either. 

None 

4 

8 

12 

16 

20 

Other    degrees    of    collateral 
consanguinity ;    Stranger     in 
blood;    Body    Politic    or   Cor- 
porate. 

None 

5 

10 

15 

20 

20 

When  beneficiaries  in  any  of 
the      last      three      preceding 
classes  are  aliens,   not  resid- 
ing in  the  United  States. 

None 

10 

20 

20 

20 

20 

26 

Exemptions  to  apply  to  entire  estate  subject  to  the  tax 
in  this  state,  and  not  to  individual  bequests. 

The  rates  provided  in  the  above  table  are  to  be  deter- 
mined by  the  value  of  the  entire  estates,  wherever  located, 
and  to  be  applied,  of  course  only  to  the  property  liable 
for  the  tax. 

With  an  inheritance  tax  law  so  classified  and  grad- 
uated we  believe  that  it  will  be  paid  cheerfully,  and  few  at- 
tempts made  to  evade  it. 

In  order  to  prevent  evasions  by  transfer  before  death, 
for  a  nominal  consideration  to  natural  heirs,  or  to  a  hold- 
ing corporation,  we  recommend  that  the  law  provide  that 
any  such  transfer  made  within  five  years  next  prior  to  the 
death  of  the  grantor  shall  conclusively  be  presumed  to 
have  been  made  in  anticipation  of  death,  and  the  property 
so  conveyed  be  subject  to  an  inheritance  tax  of  double 
the  amount  fixed  by  the  foregoing  table. 

In  order  to  facilitate  such  collection,  it  might  properly 
be  provided  that  domestic  corporations  should  report,  at 
stated  periods,  to  the  State  Treasurer,  or  at  any  time  upon 
demand  of  that  official,  any  information  disclosed  by  the 
records  of  such  corporations  showing  any  transfers  of 
stock  standing  in  the  name  of  non-resident  descedants, 
and  it  would  seem  that  the  State  Treasurer,  or  his  repre- 
sentative should  have  authority  to  examine  the  records 
of  domestic  corporations  for  the  purpose  of  acquiring  in- 
formation in  connection  with  the  collection  of  such  tax. 


INCOME  TAXi 


The  members  of  this  Board  are  unanimously  of  the 
opinion  that  an  income  tax,  efficiently  and  thoroughly  ad- 
ministered, is  the  best  and  most  equitable  system  of  taxa- 


27 

tion  that  can  be  devised,  and  we  would  be  more  than 
pleased  to  be  able  to  draw  and  recommend  the  enactment 
of  a  law  that  would  put  this  principle  into  effect  in  pur 
state.  We  believe,  however,  that  the  enforcement  of  such 
a  law  would  be  attended  with  all  the  difficulties  that  have 
in  the  past  prevented  the  collection  of  taxes  against  money 
and  credits,  and  besides  would  have  troubles  of  its  own; 
hence  we  have  felt  that  until  the  many  other  problems 
of  reform  already  proposed  herein  have  been  worked  out, 
and  until  some  of  the  older  states  already  working  on  this 
question  have  made  further  practical  application  of  the 
principle  of  income  taxation,  it  would  be  inadvisable  for 
us  to  undertake  so  difficult  and  expensive  an  experiment. 

In  1911  the  State  of  Wisconsin  enacted  an  income  tax 
law,  the  result  of  the  labors  of  some  of  the  most  practical 
and  experienced  authorities  on  taxation  matters  in  the 
United  States.  This  law  exempted  intangible  personal 
property  from  taxation,  and  attempted  to  substitute  there- 
for the  taxation  of  incomes,  which  of  course  should  make 
for  the  enforcement  of  the  law.  The  Commissioners  charged 
with  its  administration,  after  a  year  of  diligent  effort, 
report  that  they  have  made  progress  in  overcoming  the  dif- 
ficulties of  administration,  that  they  believe  the  law  to  be 
a  practicable  and  workable  substitute  for  the  taxation  of 
intangible  personal  property,  but  that  their  state  is  now 
in  the  midst  of  a  political  campaign,  one  of  the  chief  is- 
sues of  which  is  an  effort  to  repeal  this  law. 

We  believe  that  Utah  can  afford  to  await  the  result 
of  this  and  other  experiments  in  this  direction. 


EXEMPTIONS. 


We  recommend  an  exemption  to  each  householder  of 
three  hundred  dollars  on  household  goods,  wearing  appa- 
rel, \vatches,  ornaments  of  the  person,  books,  pictures  and 


28 

musical  instruments  kept  and  used  as  a  part  of  the  home 
furnishings.  This  class  of  property  produces  no  revenue 
to  its  owner,  and  the  assessment  and  collection  of  the 
taxes  thereon  is  difficult  and  expensive.  The  exemption 
aims  to  extend  relief  to  the  owner  of  the  small  home,  who 
already  bears,  in  proportion  to  his  income,  the  greatest 
burden  of  taxation. 


TAXES  A  PARAMOUNT  LIEN. 

Taxes  are  not  at  present  in  this  state  a  paramount 
lien.    We  think  they  should  be  made  so. 


TRUE    CONSIDERATION    IN    DEEDS. 

We  recommend  that  a  law  be  enacted  requiring  the 
true  consideration  of  each  transfer  of  real  or  personal 
property  to  be  stated  in  the  deed  or  other  instrument  of 
conveyance,  or  t'hat  in  lieu  thereof  a  requirement  be  made 
that  before  any  such  instrument  be  entitled  to  record  that 
there  shall  be  presented  with  it,  to  the  county  recorder 
the  affidavit  of  the  grantor  and  grantee,  or  the  agent  or 
agents  of  either  or  both  of  them  in  case  of  absence  from 
the  state  of  the  principals,  stating  that  the  consideration 
named  in  the  deed  is  the  true  consideration  for  the  trans- 
fer, if  such  be  the  case,  and  if  not,  then  stating  what  the 
true  consideration  is ;  and  if  all  or  any  portion  of  the  con- 
sideration is  other  real  estate,  or  personal  property  other 
than  money  or  evidences  of  indebtedness,  then  stating  the 
best  judgment  of  affiants  as  the  market  value  of  such 
property  so  taken  iji  exchange. 


29 

It  should  be  the  duty  of  the  recorder  in  his  certifi- 
cate of  record  to  certify  that  such  affidavit  had  been  filed, 
and  upon  its  receipt  it  should  be  promptly  transmitted  to 
the  State  Board  of  Equalization,  and  be  kept  as  a  part 
of  its  secret  files,  not  open  to  the  inspection  of  the  public. 

The  information  so  secured  would  be  tabulated  by  the 
State  Board,  and  information  for  his  county  be  furnished 
to  the  assessors  of  the  several  counties,  and  thus  in  a  very 
short  time  a  mass  of  authentic  information  v^ould  accu- 
mulate which  would  be  of  the  very  greatest  assistance  to 
the  tax  officials  in  equitably  assessing  the  property  of  the 
state. 

The  officer  charged  with  the  duty  of  collecting  the 
inheritance  tax  should  also  have  access  to  these  records, 
and  these,  together  with  the  record  of  vital  statistics  from 
the  office  of  the  State  Board  of  Health,  would  be  of  the 
very  greatest  assistance  to  him  in  the  perforniance  of  his 
duties,  and  would  result,  without  doubt,  in  the  collection 
of  this  tax  from  very  many  estates  that  now  entirely 
escape. 


UNDIVIDED   INTERESTS   IN   REAL   ESTATE. 

Under  the  present  law  as  construed  by  our  Supreme 
Court  it  is  as  much  the  duty  of  the  holder  of  an  undivided 
interest  in  real  estate  to  pay  his  co-owners'  portion  of  the 
tax,  as  it  is  his  own.  In  other  words,  the  lien  of  every 
portion  of  the  tax  attaches  to  every  portion  of  the  land. 

We  recommend  that  the  law  be  so  amended  that  the 
owner  of  an  undivided  interest  in  real  estate  can  pay  his 
proportion  of  the  whole  tax  and  receive  a  receipt  therefor 
that  will  free  his  undivided  interest  from  the  lien  of  the 
unpaid  portion  of  the  tax. 


30 
CORPORATIONS— SPECIAL   ASSESSMENTS. 

It  has  been  suggested  that  Public  Service  corporations, 
Railway,  Telegraph,  Telephone  or  Water  companies  occupy- 
ing a  portion  of  the  public  streets  or  highways  of  the 
state,  ought  when  such  streets  are  improved  by  sidewalks, 
sewer,  curb  and  guttering  or  paving,  to  pay  a  just  propor- 
tion of  the  special  assessment  levied  for  such  purpose. 
The  Commission  would  be  particularly  glad  to  hear  from 
taxpayers  generally,  and  from  the  corporations  interested 
as  well,  in  reference  to  this  proposed  measure. 


POLL  TAX. 


There  is  no  tax  that  bears  so  unequally  upon  the 
people.  In  fact  it  may  almost  be  said  that  it  bears  on  no 
two  people  alike.  In  the  perfect  system  each  citizen  con- 
tributes to  the  support  of  government  in  proportion  to  his 
ability  to  pay.  The  poll  tax  levies  a  fixed  sum  on  each 
male  citizen  without  considering  whether  he  is  a  million- 
aire or  a  day  laborer.  It  is  hard  to  collect,  and  experience 
has  shown  that  those  best  able  to  pay  the  tax  have  evaded 
or  refused  to  pay  it,  while  those  least  able  to  pay  have  not 
escaped.  The  amount  in  each  case  is  so  insignificant  that 
so  far  as  the 'municipality  is  concerned  it  is  easier  and 
cheaper  to  collect  only  from  those  who  pay  voluntarily  or 
can  be  scared  by  threats  of  suit  or  other  proceedings,  leav- 
ing the  more  sophisticated  to  go  free. 

We  recommend  the  abolition  of  this  tax. 


MINES. 

One  of  the  most  difficult  subjects  of  taxation  is  the 
mining  industry.  It  is,  of  course,  axiomatic  that  the  mines 
of  the  State  should  pay  their  fair  proportion  of  the  cost  of 


31 

government,   and  at  the  same  time  should  not  be  called 
upon  to  pay  more. 

This  State  seems  firmly  committed  to  the  principle 
of  taxing  the  net  proceeds  of  mines,  and  we  are  not  pre- 
pared to  say  that  any  better  system  has  been,  or  in  the 
nature  of  things,  can  be  devised. 

There  are,  however,  some  incongruities  connected 
with  our  present  system  of  taxing  the  net  proceeds  of 
mines. 

For  example,  roughly  speaking,  the  total  value  of  a 
mine,  at  the  time  it  commences  to  have  *'net  proceeds"  is 
the  total  value  of  the  ore  in  the  mine,  less  the  cost  of 
extraction,  treatment,  expense,  etc.,  or  in  other  words,  the 
sum  of  the  annual  net  proceeds  of  the  mine  during  all  the 
years  it  continues  to  be  a  mine,  or  to  have  net  proceeds. 
The  second  year  the  value  is  the  first  amount,  less  the  net 
proceeds  for  the  first  year ;  the  third  year  the  same  amount 
less  the  net  proceeds  for  the  first  two  years,  and  so  on. 
The  average  value  of  the  mine  during  its  life,  is  one-half 
the  average  annual  net  proceeds,  multiplied  by  the  num- 
ber of  years  of  its  productive  life.  Practically,  of  course, 
the  mine  is  worth  something  less,  as  no  account  has  been 
taken,  or  deductions  made,  on  account  of  legitimate  profits. 

As  an  illustration,  say  a  mine  produces  one  million 
dollars  in  net  proceeds  annually  for  one  hundred  years. 
Theoretically  at  least,  the  first  year  its  value  is  one  hund- 
red million  dollars,  and  its  average  value  during  its  life 
is  fifty  million  dollars.  Practically  its  first  year  value  is 
at  least  fifty  million  dollars  and  its  average  value  twenty- 
five  million  dollars,  and  yet  each  year  it  pays  taxes  on  only 
one  million  dollars  (surface  lands,  machinery  and  improve- 
ments are  omitted  from  this  illustration  as  negligible). 
The  full  value  of  the  mine,  therefore,  under  our  system, 
pays  taxes  but  once  during  the  life  of  the  mine.  A  horse 
or  cow,  on  the  other  hand,  pays  taxes  on  its  full  •  value 
every  year  of  its  life. 


32 

It  is  true  that  in  the  case  of  mines,  the  land,  improve- 
ments and  machinery  are  also  taxed,  and  it  is  also  true 
that  under  our  present  system  of  assessing  property,  the 
general  property  of  the  State  is  assessed  at  not  more  than 
one-third  of  its  true  value,  while  the  net  proceeds  of  mines 
are  assessed  at  full  value.  These  considerations  tend  in 
some  slight  degree  to  equalize  the  taxes  of  the  mine  with 
those  of  the  farm,  but  even  as  matters  now  stand  we  do 
not  think  that  it  can  be  successfully  contended  that  the 
mines  of  the  State  are  bearing  their  fair  share  of  the 
public  burden. 

Whatever  inequalities  there  now  are  will  be  greatly 
increased  when  all  -the  property  of  the  State  is  assessed  at 
its  full  cash  value,  and  the  amount  of  the  levies  reduced, 
unless  some  measure  is  adopted  to  correct  them. 

For  example:  Under  present  conditions,  in  the  same 
county,  is  a  farm  worth  thirty  thousand  dollars,  and  a 
mine  with  annual  net  proceeds  of  the  same  amount,  but, 
of  course,  actually  worth  many  times  that  amount.  The 
tax  rate  is  forty-five  mills.  The  farm  is  assessed  at  one- 
third  its  value  and  pays  annual  taxes  amounting  to  four 
hundred  fifty  dollars.  Net  proceeds  of  mines  are  assessed 
at  full  amount,  and  the  mine  pays  taxes  amounting  to 
thirteen  hundred  fifty  dollars.  This  result  is  probably 
fairly  equitable,  although  the  mine  pays  a  tax  on  a  value 
only  three  times  the  amount  of  its  annual  profits,  as  com- 
pared with  the  farm.  For  every  year  that  it  pays  profits, 
or  has  net  proceeds,  above  three,  it  has  just  that  much 
advantage  over  the  farm  and  pays  that  proportion  less  of 
its  just  burden. 

The  next  year,  however,  the  farm,  and  all  other  prop- 
erty, is  assessed  at  its  full  cash  value,  and  the  rate  re- 
duced to  fifteen  mills.  The  farm  pays  the  same  amount 
in  taxes,  four  hundred  fifty  dollars,  but  the  mine,  having 
already  been  assessed  at  the  full  value  of  its  net  proceeds, 
cannot  be  assessed  higher,  but  is  still  assessed  at  thirty 


33 

thousand  dollars,  and  pays,  by  reason  of  the  reduction  in 
the  levy,  but  four  hundred  fifty  dollars  in  taxes,  or  no 
more  than  the  farm. 

To  correct  the  injustice  that  would  arise  from  such  a 
situation,  we  recommend  that  mines  be  classified,  and 
charged  a  higher  rate  on  their  net  proceeds,  such  higher 
rate  being  sufficient  to  at  least  preserve  the  present  ratio 
between  mines  and  other  classes  of  property. 

Section  2560  as  amended  by  the  Session  Laws  of  1909 
provides  that  the  State  Board  of  Equalization  shall  assess 
not  only  the  net  proceeds  of  mines  but  the  improvements 
and  machinery  of  mines  also.  The  procedure  for  the 
assessment  of  such  improvements  and  machinery  is  as 
follows:  the  owners  or  operators  of  same  are  required  to 
report  such  property  in  detail  to  the  State  Board  of  Equal- 
ization for  assessment,  under  oath,  on  or  before  the  second 
Monday  of  February.  The  county  assessor  of  each  county 
is  also  required  to  likewise  report  in  detail  to  the  said 
board  of  equalization  all  mining  improvements  and  machin- 
ery in  his  county  on  or  before  the  first  Monday  in  March. 
From  the  two  reports  thus  received,  and  from  the  personal 
knowledge  and  information  of  the  members  of  the  board, 
the  assessments  are  annually  made  up. 

It  is  manifestly  impossible  for  the  board  to  make  a 
personal  inspection  of  any  considerable  portion  of  the 
mining  properties  of  the  State,  and  inasmuch  as  the  two 
reports  above  mentioned,  from  which  the  assessments  are 
required  by  law  to  be  made  up,  often  differ  widely  as  to 
number,  quantity,  and  value,  and  inasmuch  as  the  county 
assessor  must  necessarily,  under  the  present  system,  visit 
and  examine  this  property  annually,  we  believe  that  a 
more  satisfactory  and  effective  assessment  of  this  class  of 
property  can  be  had  by  placing  same  again  in  the  hands 
of  the  county  assessor,  especially  if  the  work  shall  be  done, 
as  elsewhere  recommended  in  this  report,  under  the  direc- 
tion and  supervision  of  the  State  Board  of  Equalization. 

3-TR 


34 


PUBLIC    SERVICE    CORPORATIONS. 

Under  this  head  we  include  all  corporations,  oper- 
ating in  more  than  one  county  in  the  State,  and  engaged 
in  a  business  that  may  be  termed  a  ''public  utility."  To 
this  class  belong  Steam  and  Electric  Railroads,  Tele- 
phones, Telegraph  and  Power  companies.  Private  Car 
and    Express   companies,    and   the   like. 

These  corporations  have  heretofore  been  assessed  by 
the  State  Board  of  Equalization,  and  the  tax  apportioned 
among  the  several  counties  in  the  proportion  that  the 
mileage  within  the  county  bears  to  the  total  mileage 
within  the  State. 

We  do  not  think  it  necessary  or  advisable  to  maKe 
any  change  in  the  method  of  assessing  these  public  service 
corporations.  We  believe  that  it  can  best  be  done  by  a 
State  board  having  a  state-wide  jurisdiction,  but  for  the 
guidance  of  that  board,  and  in  order  to  obtain  as  accu- 
rate assessment  as  possible  we  shall  recommend  the  enact- 
ment of  statutes  that  will  give  to  the  State  Board  of 
Equalization  the  authority  to  take  into  consideration: 

1. — The  actual  cash  value  of  the  tangible  property 
of  the  corporation  with  this  State,  including  in  the  case 
of  railroad  and  car  companies,  the  value  of  the  pro- 
portionate number  of  cars  and  engines  owned  by  the 
company,  on  a  mileage  basis; 

2. — The  valuation  placed  by  the  investing  public  on 
the  property  of  the  corporation,  as  evidenced  by  the 
average  market  price  during  the  twelve  months  preceding 
the  date  of  the  assessment  of  the  outstanding  stocks  and 
bonds  of  the  corporation,  plus  its  floating  indebtedness. 

3. — The  total  amount  of  dividends  paid  during  the 
twelve  months  preceding,  plus  the  amount  added  to  sur- 
plus, reserve  and  sinking  funds,  indebtedness  retired,  and 


35 

4. — The  net  earnings  of  the  corporation  for  its  fiscal 
year  next  preceding  the  date  of  the  assessment. 

5. — The  gross  earnings  of  the  corporation  for  its  fiscal 
year  next  preceding  the  date  of  the  assessment. 

Such  proportions  of  the  amounts  so  ascertained  as 
tend  to  show  the  value  of  the  entire  property,  shall,  in  the 
case  of  corporation  doing  an  interstate  business,  be 
taken,  as  the  mileage  in  this  State  bears  to  the  total 
mileage  of  said  corporation. 

From  the  information  so  obtained,  and  from  such 
other  information  as  the  said  Board  may  secure,  which 
it  may  consider  relevant  and  proper,  it  shall  assess  the 
property  of  such  corporations  in  such  amounts  as  shall 
seem  accurately  as  possible  to  represent  a  fair  assess- 
ment of  the  property  of  such  corporations  within  the 
State. 

So  far  as  the  assessment  of  this  class  of  property  is 
concerned,  we  are,  as  we  have  stated,  well  satisfied  with 
our  present  laws.  When,  however,  it  comes  to  the 
distribution  of  the  tax,  we  believe  the  present  laws  to  be 
inequitable  and  unjust.  ^^ 

We  have  given  careful  consideration  to  the  discussion 
by  the  Governor  in  his  message  to  the  Legislature  of 
1911,  of  the  question  of  the  distribution  of  the  taxes 
derived  from  what  are  generally  known  as  "public 
service"  or  "public  utility"  corporations,  also  to  the  sug- 
gestions on  the  same  subject  contained  in  the  annual 
report  of  the  State  Board  of  Equalization  for  the  years 
1909  and  1910.  We  are  heartily  in  sympathy  with  the 
ideas  therein  set  forth,  and  from  our  investigations  find 
that  such  ideas  are  rapidly  growing  in  favor  with  the 
public  and  are  being  adopted  in  one  form  or  another  in 
many  of  the  states.  It  is  not  alone  the  people  of  the 
counties    and    school    districts    wherein    are    located    the 


36 

important  railroads  and  other  public  utilities  that  con- 
tribute to  their  support  and  maintenance,  but  the  people 
of  the  whole  State,  and  hence  all  are  entitled,  in  equity, 
to  share  in  the  benefits  of  the  taxation  of  such  property. 
And  further,  it  is  an  unquestioned  fact  that  the  present 
system  permits  the  patrons  of  school  districts  and  the 
citizens  of  counties  in  which  such  public  utility  is  located 
immense  advantages  of  revenue,  school  facilities,  etc., 
not  enjoyed  by  other  districts  and  counties  not  so  favored. 
About  sixty-two  per  cent  of  the  total  taxes  collected 
under  the  general  levy  for  State  purposes  now  goes  by 
operation  of  law  into  funds  for  the  support  of  district 
and  high  schools,  and  the  University  and  Agricultural 
College,  the  benefits  of  which  are  enjoyed  by  the  people 
of  the  whole  State  without  regard  to  the  location  of  the 
property  from  which  the  tax  is  collected.  And  yet  we 
have  never  heard  of  any  objection  or  complaint  to  the 
use  of  these  funds  under  this  system  of  distribution. 

Under  a  constitutional  amendment  adopted  in  1910, 
California  not  only  exempted  from  taxation  for  county, 
municipal,  and  other  local  purposes,  the  property  of  public 
utility  companies,  but  included  in  the  property  thus  ex- 
empted, and  made  liable  for  State  taxes  only,  the  capital 
stock  of  banks,  trust  companies,  etc.,  and  a  tax  upon  the 
franchise    value    of    all    corporations. 

While  the  State  reserved  the  right  to  levy  a  State  tax 
on  all  the  property  of  the  State  for  State  purposes,  no 
such  levy  has  been  necessary  for  the  years  1911  and 
1912;  but  of  course  the  general  property  of  the  county 
has  had  to  bear  the  entire  burden  of  the  maintenance  or 
municipal  and  county  government.  The  States  of  New 
York,  Connecticut,  Vermont,  Minnesota,  and  Wisconsin, 
and  many  others,  derive  their  entire  revenue  from  inheri- 
tance and  insurance  taxes,  interest  on  State  investments, 
fees  and  licenses,  and  the  taxes  on  corporations,  thus 
lightening  the  general  burden  of  taxation  on  the  general 
property  of  the   cities   and   counties,    and   distributing:   to 


37 

all  the  people  of  the  State  without  regard  to  school  district 
or  county  boundary  lines,  the  benefits  of  the  taxes  from 
corporations,  as  also  other  sources  of  State  revenue. 

No  plan  for  the  distribution  of  the  taxes  from  public 
utility  companies,  other  than  that  now  in  effect,  can 
be  applied  until  Section  10  of  Article  XIII.  of  the  Con- 
stitution, which  provides  that  all  the  property  within 
any  taxing  district  shall  be  liable  for  all  taxes  within 
the  jurisdiction  of  the  authority  levying  the  tax,  is 
amended.  We  propose  to  introduce  such  an  amendment  in 
the  next  Legislature,  and  expect  to  see  our  statutes 
amended  in  due  time  to  conform  to  the  principle  herein 
set  forth. 


SEPARATION  OF  STATE  AND  LOCAL  REVENUE. 

The  State  derives  its  revenue  from  a  direct  tax  levied 
against  all  the  assessed  property  of  the  State,  and  from 
fees  from  State  officers,  fines  and  forfeitures,  and  from 
inheritance,  insurance,  and  special  corporation  taxes.  The 
direct  tax  thus  levied  was  limited  by  the  Constitution  to 
eight  mills,  of  which  three  mills  passes  directly  to  the 
State  District  School  Fund.  In  1910  the  Constitution 
was  amended  so  as  to  take  for  high  school  purposes  one- 
half  mill  from  the  remaining  five  mills,  thus  leaving 
to  the  State  authority  to  levy  but  four  and  a  half  mills 
for  State  purposes,  including  the  support  of  the  University 
and   Agricultural   College. 

The  total  assessed  value  of  the  property  of  the  State 
was,  in  1900,  $105,629,041,  and  in  1911  it  was  $193,- 
424,105,  an  increase  of  less  than  ten  per  cent  per  annum 
for  the  12  years.  The  revenue  for  State  purposes  from 
special  sources  was,  in  1905,  $106,811,  and  in  five  years 
it    had    more    than    doubled,    the    total    in    1910    being 


38 

$251,075.  For  the  year  1911  the  total  revenue  from  the 
same  sources  was  in  excess  of  $215,000,  exclusive  of  the 
inheritance  tax,  the  income  from  which  was  unusually 
large,  due  to  the  Harriman  estate  tax  of  $798,545. 

Comparing  these  two  sources  of  revenue,  and  allowing 
for  the  unusual  increase  in  the  inheritance  tax,  it  will 
be  seen  that  about  two  and  a  half  times  as  much 
money  was  raised  by  direct  tax  in  1911  as  was  raised  the 
same  year  from  special  sources,  while  in  1905  the  ratio 
was  five  to  one.  The  levy  for  State  purposes  in  1912  is 
four  mills  only,  thus  showing  a  gradual  decrease  of  direct 
taxation. 

Complying  with  the  suggestion  of  the  State  Board 
of  Equalization  in  its  report  of  1910,  this  Board  has 
made  a  careful  investigation  of  the  system  of  taxation 
recently  adopted  in  California  by  which  practical  separ- 
ation of  State  and  local  revenue  has  been  attained.  Under 
this  plan  the  State  has  for  the  past  two  years  derived 
its  entire  current  revenue  from  the  taxation  of  public 
service  corporations,  bank  stock,  corporation  franchises, 
inheritance  and  insurance  taxes,  and  fees  Trom  State 
offices.  The  property  thus  taxed  for  State  purposes  is 
exempt  from  taxation  for  any  other  purpose,  or 
by  any  other  jurisdiction,  while  on  the  other  hand  the 
general  property  of  the  counties  and  cities,  such  as  real 
estate  and  improvements,  and  personal  property  of  all 
kinds,  is  exempt  from  taxation  for  State  purposes,  but 
must  bear  the  entire  expense  of  county  and  municipal 
government. 

This  system,  known  as  the  ''Home  Rule  Plan,"  has  so 
far  seemed  to  give  satisfaction,  but  we  do  not  recommend 
it  for  several  reasons — first,  because  it  cannot  be  adopted 
without  constitutional  amendments,  requiring  at  least  two 
years  to  effect;  second,  because  it  tends  to  divorce  the 
interests  of  the  State  from  those  of  the  cities  and 
counties,   which   should   instead  be   united   and  cemented, 


39 

and,  third,  because  there  is  no  necessary  and  continued 
relationship  between  the '  two  classes  of  property  thus 
segregated,  so  that  each  will  meet  the  demands  made 
upon  it  without  placing  heavier  burdens  upon  the  one  class 
than  upon  the  other.  In  other  words,  it  might  soon 
happen  that  the  property  thus  segregated  for  taxation 
for  State  purposes  would  be  taxed  at  a  much  lower 
rate  or  valuation  than  the  general  property  of  the  State 
subject  to   taxation   for   local   purposes. 


PROCEDURE. 


The  sole  object  for  the  levying  and  collecting  of 
taxes  is  to  obtain  sufficient  revenue  for  governmental  pur- 
poses. If  every  tax-payer  paid  his  taxes  promptly  when 
due,  the  various  boards  charged  with  the  duty  of  making 
the  levies  could  determine  accurately  just  what  levies  were 
necessary  in  order  to  produce  the  required  revenue,  and 
would  not  be  compelled  to  make  allowance  ior  the  present 
large  percentage  of  the  tax-payers  who  allow  their  prop- 
erty to  be  sold  for  taxes,  and  the  amount  carried  by 
the  county  until  such  time  as  they  feel  better  able  to 
pay  the  tax.  It  is  as  cheap  to  postpone  the  payment 
of  taxes  as  it  is  to  borrow  money  from  the  bank  with 
which  to  pay  them.  It  follows  therefore  that  if  a  system 
can  be  devised  whereby  all  the  taxes  will  be  paid  when 
due,  that  the  levies  can  be  materially  reducejJ. 

We  believe  that  the  following  provisions  would  in- 
sure the  payment  of  practically  all  the  taxes,  on  or  before 
the  day  of  sale,  either  by  the  owners  of  the  property,  or 
by  others  *who  would  purchase  at  the  sale,  for  the  sake  of 
investment.  In  either  event  the  amount  due  for  taxes 
would  go  into  the  treasury  where  it  belongs,  and  the 
county  be  relieved  from  the  burden  of  carrying  a  large 
amount  of  unpaid  taxes  on  its  books. 


40 

First, — Provide  a  substantial  penalty,  say  ten  per 
cent  of  the  amount  of  the  tax,  and  in  no  case  less  than 
one  dollar,  to  attach  as  of  the  date  of  the  delivery  of  the 
delinquent  list  to  the  printer  for  publication,  said  list  not 
to  be  delivered  till  the  15th  day  of  December  of  each 
year. 

Sedond. — Make  the  purchase  of  property  at  tax  sale  a 
safe  and  attractive  investment. 

The  object  of  the  second  provision  is  not  for  the  bene- 
fit of  the  investor,  but  for  the  benefit  of  the  county,  and 
of  the  tax-payers  who  pay  their  taxes  promptly.  Unless 
the  investment  is  safe  and  attractive,  capital  will  not 
take  any  interest  in  it,  and  property  will  continue  to  be 
sold  to  the  county,  and  the  levies  will  continue  to  be 
high  enough  to  provide  an  ample  margin  of  safety  on 
account  of  delinquencies. 

The  investment  in  tax  titles  may  be  made  attractive 
by  providing  a  high  rate  of  interest,  say  twelve  per  cent 
per  annum,  and  further  providing  that  the  penalty  shall, 
in  case  of  sale,  go  to  the  purchaser. 

If  a  tax  sale  really  meant  anything,  there  would  not 
be  so  many  of  them.  Under  our  present  system  a  tax 
deed  is  a  joke,  and  so  well  is  this  understood  that  now 
in  this  State,  except  to  mortgagees  or  other  persons 
holding  liens  to  protect,  there  are  very  few  tax  sales 
made  to  others  than  the  county. 

Our  system  of  procedure  to  be  followed  by  the 
various  tax  officials,  is  needlessly  involved  and  complex. 
It  can,  and  should  be  so  simplified  that  no  officer  having 
to  do  with  the  assessment,  levying  or  collecting  of  the 
taxes  need  have  any  difficulty  in  understanding  and 
following  the  plain  directions  of  the  statutes. 

Among  the  changes  which  we  are  considering  and 
which  we  think  will  tend  to  simplify  the  procedure,  are 
the  following: 


41 

Eliminate  the  the  requirements  for  assessors'  and 
auditors'  affidavits  on  the  Assessment  Roll.  These  offi- 
cers take  an  oath  to  discharge  the  duties  of  their  office 
with  fidelity,  and  the  present  requirement  that  they  sub- 
scribe to  an  affidavit  that  they  have  done  so  in  any  par- 
ticular instance  is  as  absurd  as  it  would  be  to  require  a 
judge  to  file  an  affidavit  with  every  judgment,  to  the 
effect  that  he  had  honestly  tried  to  render  a  correct 
decision. 

Abolish  the  notice  of  assessment,  sent  to  each  tax- 
payer. Experience  has  shown  that  a  very  small  percentage 
of  these  notices  are  ever  acted  upon.  Let  there  be  a 
published  notice  of  the  meeting  of  the  Board  of  Equaliza- 
tion, and  let  the  times  of  such  meeting  be  fixed  by  law, 
and  then  let  the  tax-payer  ascertain  the  amount  of  his 
assessment  and  apply  to  the  Board  for  relief  if  he  thinks 
he  is  entitled  to  any.  Of  course,  we  would  make  it  the 
duty  of  the  County  Treasurer  to  give  the  information 
usually  contained  in  the  Notice  of  Assessment,  by  mail, 
whenever  requested.    * 

Mail  tax  notices  only  to  those  who  request,  in  writing, 
to  have  them  mailed.  The  expense  of  getting  out  the 
tax  notices,  for  the  State  is  at  least  fifty  thousand  dollars 
each  year.  Many  of  these  notices  are  lost,  and  it  some- 
times happens  that  the  County  Treasurer  is  compelled  to 
make  out  three  or  even  four  notices  for  the  same  property. 
Every  person  owning  property  knows  that  taxes  are  levied 
against  it,  and  there  is  no  reason  why  the  State  should  be 
compelled  to  send  out  dunning  letters,  which,  practically 
are  all  the  tax  notices  amount  to.  Persons  living  at  a  dis- 
tance from  the  county  seat,  or  who  habitually  pay  their 
bills  by  check,  can  make  a  request  for  a  statement  of  the 
amount  of  their  taxes,  which  would  be  furnished  as  a 
matter  of  course. 

Give  each  tract  of  real  estate  a  "tax  number"  which 
would  correspond  with  the  number  of  the  tract  on  the 


42  * 

present  ownership  maps;  require  the  County  Recorder 
to  endorse  on  every  deed  recorded  by  him,  this  tax 
number,  and  then  use  the  number  instead  of  the  description 
in  all  notices,  receipts  and  other  documents  in  the  tax 
system.  Many  of  the  descriptions  of  the  real  property 
of  the  State  are  long  and  technical,  and  the  copying  of 
these  long  and  involved  descriptions  for  the  notice  of 
assessment  and  the  tax  notice,  the  assessment  roll  and 
delinquent  list,  is  responsible  not  only  for  the  greater 
portion  of  the  expense  involved  in  getting  out  these 
notices,  but  also  for  the  mistakes  that  creep  into  some 
part  of  the  proceedings  and  thus  invalidate  the  sale.  If 
this  last  suggestion  is  adopted  the  chief  arguments  in  favor 
of  abandoning  the  notice  of  assessment  and  the  tax  notice 
will  have  disappeared. 

When  the  tax  sale  certificate  has  matured,  instead 
of  issuing  a  deed,  without  notice  to  the  owner  of  the 
property,  require  the  holder  to  foreclose  the  same  by 
action  in  court,  with  the  same  notice  to  the  owner  as  is 
required  in  actions  to  foreclose  mortgages,  and  make  the 
decree  as  final  as  is  such  a  decree,  subject  to  be  set  aside 
in  the  same  manner  and  on  the  same  terms  only  as  are 
other  judgments  of  a  court  of  record. 

Make  the  certificate  of  sale  prima  facie  evidence  of 
the  regularity  of  all  proceedings  connected  with  the  sale. 

Under  a  system  like  this  we  believe  that  there  would 
be  very  few  tax  sales.  Of  the  few  sales  made  a  very 
small  proportion  would  ripen  into  a  tax  title,  but  of  the 
few  that  did  the  title  would  undoubtedly  be  good,  and 
certainly  it  must  be  conceded  that  if  the  State  assumes 
to  sell  property  and  deliver  the  title  because  of  a  failure 
to  pay  the  taxes  it  has  levied  against  it,  then  in  justice  to 
itself  and  to  its  citizens  the  title  which  it  attempts  to 
deliver  should  be  good. 


43 
CONSTITUTIONAL  AMENDMENTS. 

Early  in  the  course  of  our  investigations  we  communi- 
cated with  the  National  Tax  Association,  and  submitted 
to  it  a  draft  of  the  four  resolutions  affecting  taxation 
adopted  by  the  last  Legislature,  and  now  before  tlje  people 
for  ratification  at  the  next  general  election,  as  amend- 
ments to  the  State  constitution.  We  also  arranged  a 
meeting  with  the  personal  representatives  of  the  associa- 
tion in  this  city,  and  discussed  fully  with  them  the  amend- 
ments, and  later  brought  them  to  the  attention  of  the 
association  in  its  annual  conference  at  Des  Moines.  These 
proposed  changes  in  our  State  constitution  were  unani- 
mously endorsed  and  approved  by  all  who  gave  them 
consideration,  as  being  in  the  interest  of  tax  reform.  We 
desire  likewise  to  endorse  and  approve  them,  and  here- 
with submit  our  reasons  therefor  and  show  the  purposes 
soughts  to  be  accomplished  by  each. 


SENATE    JOINT    RESOLUTION    No.    7. 

Proposes  to  amend  Sec.  2  of  Article  XIII.  by  inserting 
after  the  word  "Constitution,"  in  line  two,  the  words  **or 
the  laws  of  the  State  of  Utah,"  thus  giving  to  the  Legis- 
lature power  to  make  exemptions  other  than  those  provided 
for  in  the  Constitution. 

It  is  very  generally  conceded  that  the  man  of  small 
means,  the  householder  who  works  for  wages  and  owns 
no  property  other  than  his  small  home  and  its  belongings, 
all  of  which  are  visible,  tangible,  and  easily  discoverable, 
bears  a  much  greater  burden  of  taxation,  especially  if  we 
take  into  consideration  his  ability  to  pay  and  the  sacrifice 
involved,  than  does  his  more  wealthy  fellow  citizen.  The 
approval  of  this  resolution  by  the  voters  at  the  election  in 


44 

November  will  give  the  Legislature  power  to  make  an 
exemption  of  three  hundred  dollars,  as  recommended  on 
page  27  of  this  report,  or  such  other  sum  as  may  seem  to 
it  desirable,  as  a  measure  of  relief  to  the  now  over- 
burdened small  home-owner. 

And,  further,  the  taxation  in  this  State  of  intangible 
personal  property,  such  as  money,  and  solvent  credits  of 
all  kinds  is  an  absolute  farce,  only  those  unsophisticated 
in  the  ways  of  the  tax-dodger,  and  widows  and  orphans 
whose  estates  are  a  matter  of  record  through  court  pro- 
ceedings, being  the  victims  of  the  tax  on  this  class  of 
property.  On  the  other  hand,  the  wealthy  holder  of  bonds, 
book  accounts,  mortgages  and  other  securities  goes  scot 
free.  Certainly,  there  should  be  a  complete  and  vigorous 
enforcement  of  the  law  taxing  such  property  or  it  should 
be  by  law  exempt  from  taxation.  Many  states  have  so 
exempted  it,  while  others,  believing  that  this  class  of 
property  should  pay  at  least  some  portion  of  its  obliga- 
tion to  the  public  treasury,  and  in  order  to  overcome  the 
seeming  insuperable  difficulty  of  assessing  and  collect- 
ing taxes  from  property  so  easily  hidden  from  the  gaze 
of  the  tax-gatherer,  have  so  amended  their  State  con- 
stitutions as  to  permit  the  classification  of  the  various 
kinds  of  property  and  the  application  of  different  rates 
to  the  several  classes.  In  harmony  with  this  idea  the 
Legislature  passed 


SENATE    JOINT    RESOLUTION    No.    8. 

which  amends  Section  3  of  Article  XIII.  so  as  to  permit 
such  classification.  The  chief  purpose  of  this  proposed 
amendment  is  to  permit  the  application  to  intangible 
personal  property  of  a  low  fixed  rate  of  assessment,  say 
three  mills,  upon  the  belief  that  the  owners  of  such 
property  will  list  it  for  assessment  at  such  low  rate  rather 
than  falsify  their  returns,  a  practice  that  has  become 
almost  universal  because  of  the  fact  that  the  assessment 


45 

of  this  property  at  full  value  (and  there  could  be  no 
compromise  with  full  value  assessment)  would  practically 
confiscate  the  entire  revenue  therefrom.  The  State  or 
Minnesota,  applying  the  principle  here  briefly  outlined, 
increased  her  assessed  valuation  of  intangible  personal 
property  to  over  eight  hundred  and  fifty  per  cent  in 
two  years. 

Both  these  resolutions  should  pass  so  that  the  Legis- 
lature would  be  free  to  adopt  either  the  total  exemption 
plan,  as  provided  by  Section  2,  or  the  classification  and 
low  rate  plan  provided  by  Section  3. 


SENATE   JOINT  RESOLUTION  No.   12. 

Seeks  to  amend  Section  11  of  Article  XIII.  so  as  to 
allow  the  Legislature  to  readjust  the  duties  and  relation- 
ship of  the  State  Board  of  Equalization  and  the  various 
County  Boards  of  Equalization. 

Under  the  provisions  of  this  section  as  it  now  stands, 
and  as  interpreted  by  the  courts,  the  State  Board  of 
Equalization  may  raise  or  lower  the  valuation  of  any  class 
of  property  (as  classified  by  law  for  such  purpose)  in  any 
or  every  county  of  the  State,  or  it  may  raise  or  lower  the 
total  valuation  of  all  property  in  any  or  all  counties  of  the 
State,  which  would  seem  to  be  ample  power  for  purposes 
of  equalization;  but  experience  has  demonstrated  that 
individual  assessments  within  a  county  may  vary  widely 
in  the  proportion  of  assessed  to  true  value,  such  variance, 
under  careful  and  disinterested  investigation,  having  been 
found  to  range  from  ten  to  seventy  per  cent,  even  after 
passed  upon  by  the  County  Board  of  Equalization.  It  is, 
therefore,  manifest  that  any  attempt  on  the  part  of  the 
State  Board  of  Equalization  to  equalize  between  classes  or 
counties  by  the  application  of  a  flat  percentage  of  in- 
crease or  decrease  of  valuation,  will  multiply  and  exagger- 
ate   the    wide    differences    already    existing    between    in- 


46 


dividual  assessments.  This  subject  is  further  treated 
under  under  that  part  of  our  report  dealing  with  the 
need  of  central  supervision  of  taxation  matters,  to  which 
reference  is  hereby  made. 


SENATE   JOINT   RESOLUTION   No.   7. 

It  is  the  intent  of  this  resolution  to  provide  for  the 
amendment  of  Section  4  of  Article  XIII.  so  that  legis- 
lation may  be  enacted  that  will  correct  the  present  un- 
equal assessment  of  lands  containing  coal,  hydrocarbons 
and  stone  deposits.  Under  this  section  of  the  Constitution, 
as  it  now  reads,  such  lands  must  be  taxed  at  the  price 
paid  the  United  States  therefor,  which  price  varies  from 
one  dollar  and  fifty  cents  per  acre  to  three  hundred  dollars 
per  acre,  without  regard  to  present  value  or  conditions. 
There  can  be  no  question  but  that  the  law  should  permit 
the  assessment  of  these  low  priced  lands  at  a  higher  value, 
and  of  the  high  priced  lands  at  a  lower  value. 

As  to  all  these  amendments,  as  well  as  others  that  may 
be  proposed  later,  affecting  taxation,  we  believe  that  the 
Legislature  should  be  given  a  free  hand  to  deal  with  the 
ever-changing  economic  conditions,  the  intricate  develop- 
ment of  corporate  holdings  and  existence,  and  to  put  into 
effect  the  good  results  of  the  efforts  and  experience  of 
other  States,  as  well  as  our  own. 

This  report  is,  as  its  title  indicates,  simply  prelimi- 
nary. It  will  be  the  duty  of  this  Commission  to  make  a 
report  to  the  next  Legislature,  in  which  will  be  embodied 
a  new  revenue  act  to  replace  present  legislation. 

In  addition  to  the  experience  gained  in  former  years 
by  a  more,  or  less  careful  study  of  revenue  measures  and 
methods,  the  members  of  this  Commission  have  devoted 
practically  their  entire  time  since  their  appointment,  to 
the  work  entrusted  to  them. 


47 

We  have  been,  and  shall  be,  solicitous  not  to  recom- 
mend any  measure  for  or  against  the  interest  of  any 
particular  class  of  tax-payers,  but  to  devise  a  law  that 
will  be  just  to  all  the  people  of  the  State. 

The  principal  recommendations  contained  in  this  re- 
port were  submitted,  in  a  paper  read  by  one  of  our 
number,  to  the  members  of  the  National  Tax  Association, 
at  its  Sixth  Annual  Conference,  held  at  Des  Moines,  early 
in  September  of  this  year.  This  conference  was  attended 
by  a  very  large  number  of  those  who  are  really  entitled  to 
be  denominated  the  "Tax  Experts"  of  this  country,  and 
our  recommendations  received  the  unqualified  approval  of 
the  members  of  that  Association. 

This  report  is  made,  as  we  said  in  the  beginning,  in 
the  hope  that  interest  will  be  aroused,  and  to  that  end 
we  invite  free  criticism  and  suggestion  from  the  people 
of  the  State. 

Respectfully    submitted, 

HARDEN    BENNION, 
FRANCIS  W.  KIRKHAM, 
C.   S.  PATTERSON, 

Commissioners. 


It  is  to  be  observed  that  at  the  time  this  report  was 
published,  this  Commission  was  unimously  of  the  opinion 
that  the  property  of  the  State  ought  to  be  assessed  at 
its  full  cash  value,  and  indeed  the  laws  of  the  State  have 
always  insisted  that  such  should  be  the  practice.  That 
the  law  had  never  been  complied  with  in  that  respect 
was  due  undoubtedly  to  a  number  of  causes,  to  some  of 
which  attention  was  called  in  our  preliminary  report  and 
need  not  be  further  referred  to. 


■   48 

We  believe  that  the  only  way  in  which  assessment  at 
full  cash  value  could  be  enforced  was  by  so  limiting 
the  levies  by  the  several  taxing  jurisdictions  that  assess- 
ment at  full  cash  value  would  be  necessary  in  order  to 
insure  under  the  levies,  as  so  limited,  the  collection  of  a 
sufficient  revenue  for  the  purposes  of  government. 

We  spent  a  great  deal  of  time  and  considerable  labor 
in  considering  the  maximum  amounts  of  the  several  levies 
that  ought  to  be  allowed,  and  the  results  of  our  investiga- 
tions are  embodied  in  a  table  showing  present  and  pro- 
posed levies  printed  in  our  preliminary  report,  to  which 
attention  is  hereby  directed. 

Certain  amendments  to  the  Constitution  of  this  State 
had  been  proposed  by  the  last  Legislature  to  be  submitted 
to  the  people  of  the  State  at  the  last  general  election 
for  ratification.  These  amendments,  among  other  things, 
would  have  permitted  the  Legislature  to  make  a  classifi- 
cation of  property  and  to  assess  different  classes  at  differ- 
ent rates.  They  would  also  have  permitted  the  Legis- 
lature to  make  exemptions  not  now  permitted  under  the 
Constitution. 

Unfortunately  these  amendments  to  the  Constitution 
did  not  meet  the  approbation  of  the  people  of  the  State 
and  they  were  all  defeated. 

Under  our  present  system  of  assessing  mines,  the 
surface  lands  owned  by  the  mines  are  assessed  at  the 
price  paid  the  Government  therefor,  and  permanent  im- 
provements, mills,  machinery,  etc.,  are  assessed  as  other 
property.  In  addition  to  this,  the  only  other  taxes  paid 
by  a  producing  mine  is  the  general  tax  on  its  net  pro- 
ceeds. These  net  proceeds  have  been  uniformly  assessed  at 
full  value,  but  even  so,  we  are  of  the  opinion  that  the  pro- 
ducing mines  of  the  State  have  heretofore  paid  less  than 
their  fair  share  of  the  taxes.    Our  reasons  for  arriving  at 


49 

this  conclusion  are  given  at  some  length  in  our  Prelimi- 
nary Report  and  need  not  be  elaborated  here. 

The  result  of  our  investigations  has  indicated  that 
banking  institutions  within  this  State  have  been  assessed 
at  approximately  seventy-five  per  cent  of  the  value  of 
their  capital  stock,  surplus  and  undivided  profits,  less 
deductions  for  property  otherwise  taxed  as  provided  by 
law. 

Other  property  throughout  the  State  has  been  assessed 
on  an  average  of  about  thirty  per  cent  of  its  actual 
cash  value. 

It  is  thus  apparent  that  a  law  so  limiting  the  levies 
that  an  assessment  at  full  cash  value  be  enforced  will 
result  in  multiplying  the  amount  of  the  assessment  of 
the  general  property  of  the  State  by  at  least  three.  There- 
fore, in  order  to  raise  the  same  revenue  that  is  now 
represented,  the  amount  of  total  levies  would  necessarily  be 
divided  by  three. 

Net  proceeds  of  mines  already  being  assessed  at 
full  value  could  not  be  assessed  any  higher^  and  the 
result  would  be  that  under  levies  only  one-third  as  large 
as  those  made  at  present,  mines  would  pay  only  one-third 
of  the  amount  of  taxes  they  are  now  paying. 

Inasmuch  as  banks  are  now  assessed  at  seventy-five 
per  cent  of  the  amount  they  can  be  assessed  (provided  the 
assessors  of  the  State  are  doing  their  full  duty  in  relation 
to  the  assessment  of  banks,  which  we  are  somewhat 
inclined  to  doubt),  their  assessment  could  only  be  in- 
creased 331/3  per  cent,  while  their  levies  with  that  of  all 
other  property  would  be  divided  by  three.  The  total 
assessment  of  banks  and  mines  in  this  State  is  about  fif- 
teen million  dollars,  and  while  the  rates  in  the  different 
counties  vary  so  much  that  it  would  be  difficult  to 
state   accurately   the   amount  of   revenue   that   would   be 

4-TR 


50 

lost  from  these  sources  to  the  several  taxing  districts  of 
the  State,  we  have  estimated  that  it  v^ould  be  at  least 
one  thousand  dollars  for  each  and  every  working  day  in 
the  year. 

This  deficit  of  course  would  of  necessity  be  made  up 
by  other  taxpayers. 

Had  the  proposed  amendment  of  Section  11,  Article 
XIII,  of  the  Constitution  been  approved,  the  State  Board 
of  Equalization  could  have  been  given  the  duties  and 
powers  under  the  law  which  we  recommended  in  our 
Preliminary  Report,  and  to  which  we  now  refer. 

We  regard  such  powers  essential  in  the  proper  ad- 
ministration of  the  proposed  change  to  assessment  at  full 
value.  As  shown  in  our  first  report,  the  rates  of  assessed 
value  to  true  value  for  farm  lands  vary  approximately 
in  the  different  counties  from  18  per  cent  in  Grand 
County,  to  56  per  cent  in  Kane  County.  Grand  County 
has  a  large  mileage  of  railroad  property  and  is  but 
sparsely  settled,  while  Kane  County  has  no  railroads  or 
manufactories  and  has  in  proportion  to  its  inhabitants  a^ 
large  school  population.     Suppose  the  State  should  now 

reduce  the  rates  to  one-third  their  present  amount;  an 
easy  way  to  adjust  the  assessment  roll  in  Grand  County 
would  be  to  multiply  the  present  assessment  by  three, 
which  would  make  its  ratio  to  full  value  still  about  one- 
half  the  true  amount,  and  it  would  still  be  able  to  pay 
only  one-half  its  true  portion  of  the  State  tax,  and  the 
evils  of  unjust  discrimination  in  individual  assessments 
in  the  county  would  not  be  rectified.  In  Kane  County, 
however,  all  individual  property  assessed  at  331/3  per 
cent  or  less  would  be  immediately  raised  to  full  value, 
as  it  would  be  imperative  to  the  county  assessor  to  so 
increase  the  total  value  in  the  county  that  its  revenue  be 
not  less  under  the  low  levy  than  under  the  old  one.  In 
such  a  county  it  would  be  necessary  to  vote  special  taxes 


51 

in  order  to  supply  the  fiscal  needs,  and  thus  the  assessor 
would  be  forced  to  consider  carefully  the  value  of  each 
incjividual  property. 

But  how  could  assessment  at  full  value  be  enforced 
in  Grand  County?  Only  through  the  power  of  the  State 
Board  of  Equalization  which  could  order  and  enforce 
a  reassessment  of  all  property  in  the  county  in  a  more 
effective  way  than  is  at  present  possible  under  the  Con- 
stitution, as  has  been  pointed  out  in  our  Preliminary 
Report. 

These  conclusions  have  so  impressed  a  majority  of 
the  members  of  this  Commission  that  we  feel  it  would  be 
an  injustice  to  the  general  taxpayers  of  the  State  to 
recommend  to  the  Legislature  any  legislation  which  would 
produce  so  inequitable  and  unjust  a  result. 

We  have,  therefore,  with  great  reluctance,  abandoned 
any  recommendation  for  the  limitation  of  levies  for  the 
purpose  of  securing  assessment  of  property  at  its  full 
cash  value  so  long  as  our  Constitution  remains  as  it  is.  We 
have  great  sympathy  with  the  position  taken  by  the 
Chairman  of  this  Commission  in  his  minority  report,  and 
there  is  much  to  be  said  for  the  position  which  he  takes, 
and  which  is  so  well  presented  by  him,  but  inasmuch 
as  we  believe  that  mines  and  banks  have  heretofore  paid 
less  rather  than  more  of  their  fair  share  of  the  tax  burden, 
we  find  ourselves  unwilling  to  agree  to  any  system  that 
would  result  in  their  paying  less  than  they  are  already 
paying  even  though  the  passage  and  enforcement  of  laws 
putting  into  effect  such  a  system  should  hasten  much 
needed  amendments  to  our  Constittuion. 

Had  the  amendment  to  the  Constitution  permitting 
classification  been  ratified  by  the  people  at  the  last  elec- 
tion, then  it  would  have  been  easy  to  have  prepared 
a  bill  classifying  mines,  banks,  moneys  and  credits,  and 
other  classes  of  property  that  might  seem  desirable,  and 


52 


applying  to   such   classes   such   differing   rates   as   might 
seem  best  calculated  to  distribute  the  tax  burden  equitably. 


MONEYS  AND   CREDITS. 

In  our  Preliminary  Report,  to  which  reference  is 
hereby  made,  we  called  attention  to  the  difficulty,  or 
or  to  speak  more  accurately,  to  the  impossiblity,  of  collect- 
ing taxes  on  intangible  personal  property. 

The  classification  of  personal  property  heretofore  in 
use  in  this  State  is  so  made  that  it  is  impossible  to  de- 
termine without  the  examination  of  every  assessment  on 
every  assessment  roll  in  the  State  just  what  amount  of  this 
class  of  property  has  heretofore  been  returned  by  the 
assessors  of  the  State.  Moneys  and  credits  have  been 
included  in  the  same  class  with  bank  stock,  interest  in 
State  lands,  and  miscellaneous  personal  property  not  in- 
cluded in  specific  classes  heretofore  provided.  It  is  for 
this  reason  that  any  statement  as  to  the  amount  of  taxes 
heretofore  paid  on  property  distinctly  classified  as  moneys 
and  creditg  would  of  necessity  be  simply  an  estimate  of 
the  person  making  the  statement,  and  its  value  would 
depend  upon  the  opportunity  such  person  had  of  examining 
in  detail  the  assessment  roll  of  each  of  the  several 
counties  of  the  State. 

While  this  Commission  has  made  quite  a  careful 
examination  of  most  of  the  assessment  rolls  of  several 
counties  of  the  State,  we  confess  our  inability  to  state 
even  approximately  the  amount  of  such  property  that  has 
been  returned  by  the  various  assessors.  We  are  satisfied, 
however,  that  it  is  very  small,  and  in  our  judgment  the 
amount  during  any  year  for  the  past  three  or  four 
years  has  not  exceeded  three  hundred   thousand   dollars. 


53 

Of  course  an  assessment  of  this  amount  in  this 
State  is  practically  equivalent  to  no  assessment  at  all. 

As  we  said  in  our  Preliminary  Report,  we  believe 
that  this  condition  is  not  due  to  any  fault  or  neglect  of 
the  assessors  of  the  State,  and  is  not  peculiar  to  this 
State,  but  is  universal  wherever  an  attempt  is  made  to 
tax  this  class  of  property  at  the  same  rate  that  is  used 
for  the  general  property  tax. 

The  average  rate  of  taxation  in  this  State  at  pres- 
ent is  between  thirty  and  forty  mills.  '  Money  on  deposit 
in  a  savings  bank  earns  four  per  cent  interest  per  annum; 
thus  the  tax  at  the  present  rate  on  such  property 
would  absorb  practically  its  entire  income. 

Had  the  amendment  to  Section  3  of  Article  XIII  of 
our  Constitution  been  ratified  at  the  late  general  elec- 
tion, then  we  had  proposed  to  recommend  that  intangible 
personal  property  be  taxed  at  a  low  rate,  not  less  than 
three  mills  nor  more  than  five  mills,  and  also  to  recom- 
mend some  stringent  provisions  respecting  the  enforce- 
ment in  the  courts  of  the  State,  of  contracts  for  the 
pajnuent  of  money  which  had  not  paid  taxes  assessed 
against  them,  in  the  belief  that  such  provisions  would 
have  placed  many  millions  of  dollars  on  the  assessment  rolls 
of  the  State,  and  a  very  respectable  revenue  thus  derived 
from  a  source  which  is  now  entirely  barren. 

This  system  has  lately  been  put  in  force  in  Connecti- 
cut, Maryland,  Minnesota,  Iowa  and  Pennsylvania,  and 
perhaps  one  or  two  other  states,  with  an  unbroken  record 
of  complete  success.  In  Minnesota,  for  example,  the 
assessment  of  this  class  of  property  under  the  low  rate 
increased  from  thirteen  million  dollars  in  1910  to  one 
hundred  twenty-two  million  dollars  in  1911,  and  the  re- 
sults   in   the   other   states   have   been   equally   gratifying. 

We  very  much  regret  that  under  our  present  consti- 
tutional provisions,  we  are  unable  to  suggest  or  to  recom- 


54 


mend  any  amendment  to  our  present  laws  that  in  our 
judgment  would  result  in  placing  a  larger  proportion 
of  the  intangible  personal  property  of  the  State  on  the 
assessment  rolls. 


We  have  prepared  and  submit  herewith  a  general 
revenue  measure  embodied  in  a  bill  of  two  hundred  seventy- 
eight  sections.  In  preparing  this  bill,  we  have  altered 
existing  legislation  only  where  it  seemed  necessary  to 
do  so,  and  the  arrangement  of  the  bill  embodies  our 
ideas  as  to  a  proper  and  logical  classification  of  legisla- 
tion on  this  subject. 

A  synopsis  of  this  classification  is  as  follows : 

DEFINITIONS. 

Assessments  : 

General  Provisions. 

Lands  and  Improvements. 

Interest  in  State  Lands.    , 

Water  Rights. 

Assessments  by  State  Board  of  Equalization. 

Mines. 

Railroads. 

Other  Public  Service  Corporations. 

Public  Service  Corporations  All  in  One  County. 

Bank  Stock. 

Express  and  Stage  Companies. 

Gas  and  Water  Companies. 

Bridges  and  Ferries. 

Transient  Stock. 

Property   in   Litigation. 

Concealed  Property. 

Property  Escaping  Assessment. 


55 

Property  brought  into  County  after   second   Monday 

in  April.     * 
Assessment  for  Cities  and  Towns. 
Assessor's  Liability. 
Completion  of  Assessment  Roll. 
Prosecution  of  Assessor  for  Fraud. 
Information  to  State  Board. 
Penalties. 

Equalization  : 

Valuation   Notice. 

State  Board  of  Equalization. 

County  Board  of  Equalization. 

Levy  and  Lien: 

General  Provisions. 

State  Tax. 

State  School  Tax. 

State  High  School  Tax. 

County  and  County  School  Tax. 

Special  County  Tax. 

Sheep  and  Goats. 

City  Tax. 

Libraries. 

City  School  Tax. 

District  School  Tax. 

Town  Tax. 

Special  Road  Tax. 

Collection: 

Car  Companies. 

County  Auditor's  Duties. 

County  Treasurer's   Duties. 

Actions. 

PUBLICATION. 
SALE. 


56 
REDEMPTION. 
FORECLOSURE. 

STATE   BOARD   OF   EQUALIZATION. 
SETTLEMENTS   AND   REPORTS. 
MISCELLANEOUS. 


Accompanying  the  main  revenue  measure  are  a  num- 
ber of  separate  bills  which,  for  various  reasons,  we  thought 
better  not  to  incorporate  in  the  main  bill. 

We  now  desire  to  call  attention  briefly  to  the  changes 
and  additions  we  have  made,  and  to  state  our  reasons 
for  recommending  such  changes: 


DEFINITIONS— SECTION  1. 
No  changes  have  been  made  in  this  section. 

ASSESSMENT. 

Sections  2,  3,  4,  and  5  have  been  adopted  practically 
without  change. 

Section  6  is  an  amendment  of  2546,  Compiled  Laws, 
and  makes  a  number  of  changes  in  the  classification  pro- 
vided for  the  assessment  roll,  which  we  believe  will  be 
of  advantage  as  the  classification  we  have  provided  is 
much  more  thorough  and  complete. 

Compiled  Laws,  Section  2553,  as  amended  by  Chap- 
ter 63,  Laws  of  1909,  contained  two  separate  and  dis- 
tinct provisions,   the   first  requiring  the   State   Board  of 


57 

Equalization  to  furnish  the  County  Assessor  a  list  of 
patents  of  mine  locations  and  coal  lands,  and  the  second 
requiring  the  Board  of  County  Commissioners  to  furn- 
ish, for  the  use  of  the  assessor,  present  ownership  maps. 
We  have  thought  it  wise  to  divide  this  section.  Sections 
7  and  8  of  our  bill  prescribe  the  duties  of  the  State  Board 
of  Equalization  and  of  the  County  Assessor  in  regard 
to  list  of  patents  and  Receivers'  Final  Receipts.  We 
have  further  provided  that  the  State  Board  of  Equaliza- 
tion keep  a  record  or  copies  of  the  information  so  furnished 
to  the  assessor,  a  practice  which  we  understand  has 
not  heretofore  obtained. 

Section  9  provides  for  the  furnishing  of  present  own- 
ership maps  for  the  use  of  the  assessor,  and  does  not 
differ  materially  from  existing  law. 


TAX   NUMBERS. 

Sections  10  to  14  inclusive  are  new  legislation,  and 
provide  for  the  description  of  real  estate  by  tax  number 
instead  of  by  subdivision,  courses  and  distances,  or  metes 
and  bounds,  as  at  present. 

Under  the  law  as  it  is  at  present,  the  county  officials 
are  required  to  enter  an  accurate  description  of  the 
lands  assessed  in  the  assessment  roll,  the  valuation  notice, 
the  tax  notice,  the  delinquent  list,  the  certificate  of  tax 
sale,  the  tax  deed,  redemption  certificate,  and  in  the 
case  of  the  tax  notice  this  often  has  to  be  repeated  more 
than  once. 

A  great  many  of  the  descriptions  of  real  estate 
in  this  State  are  long  and  technical,  and  require  the  very 
highest   degree   of   clerical   ability   to   transcribe   without 


58 

error.  A  large  portion  of  the  annual  expenses  of  collect- 
ing the  taxes  is  due  to  the  present  necessity  of  accurately 
copying  these  long  involved   descriptions   so   many  times. 

Under  the  system  we  recommend,  the  labor  of  pre- 
paring the  assessment  roll,  the  differrent  notices  and  the 
delinquent  list  will  be  greatly  reduced,  and  the  chances 
for  error  practically  eliminated. 

Section  15  is  an  amendment  of  Section  2516,  Com- 
piled Laws,  as  amended  by  Chapter  63,  Laws  of  1909. 
The  principal  change  which  we  recommend  in  this  sec- 
tion is  to  require  the  assessor  to  finish  his  assessment 
before  the  second  Monday  in  April  instead  of  the  first 
Monday  in  May.  We  are  satisfied,  from  investigations 
which  we  have  made,  that  the  assessment  can  readily 
be  completed  in  any  county  in  the  State  by  the  time 
we  have  indicated,  and  we  have  found  that  heretofore 
some  of  the  officials  connected  with  the  revenue  system 
have  had  insufficient  time  within  which  to  perform  the 
duties  required  of  them  by  law,  and  we  have  therefore 
attempted  to  more  equitably  distribute  the  time  within 
which  the  officials  shall  perform  their  appointed  acts, 
and  this  change  is  simply  one  of  the  changes  we  have 
made  with  that  end  in  view. 

The  Constitution  now  requires  that  the  assessment 
of  machinery  and  surface  improvements  upon  or  appurte- 
nant to  mines  and  mining  claims  be  made  by  the  State 
Board  of  Equalization.  It  is  manifestly  impossible  for 
the  State  Board  of  Equalization  to  personally  examine 
and  assess  any  considerable  percentage  of  the  mines  re- 
quired to  be  assessed  by  them.  The  law  has  heretofore 
recognized  this  condition  by  requiring  the  owners  of 
mines  to  report  under  oath  the  nature  and  value  of  such 
improvements,  and  also  requiring  the  County  Assessor 
to  advise  the  State  Board  of  Equalization  of  his  estimate 
of  such  value. 


59 

In  Section  16  we  have  recognized  the  situation  im- 
posed by  constitutional  limitation,  and  have  made  it  the 
duty  of  the  assessor,  during  the  fall  of  each  year,  v^hile 
all  mines  and  mining  claims  are  accessible,  to  visit  them 
and  to  practically  make  an  assessment,  or  at  least  to 
make  such  report  to  the  State  Board  of  Equalization  as 
would  amount  to  an  assessment  had  the  assessor  authority 
to  assess.  This  careful  statement  in  connection  with 
the  sworn  statement  of  the  mine  owner  ought,  in  most 
cases,  to  enable  the  State  Board  of  Equalization  to  make 
a   fair   assessment   of  this   class  of  property. 

Section  17  is  a  combination  of  Section  2517  and 
Section  2519,  Compiled  Laws,  which  we  have  adopted 
practically  without  change,  except  that  the  form  of  the 
affidavit  may  be  dictated  by  the  State  Board  of  Equaliza- 
tion. 

Section  18,  referring  to  a  statement  of  debts  that  may 
be  deducted  from  credits,  is  Section  2518,  Compiled  Laws, 
in  which  we  recommend  no  change. 

Section  19  is  a  reenactment  of  Section  2520,  Com- 
piled Laws,  except  that  we  have  provided  that  the  time 
within  which  the  taxpayer's  statement  must  be  returned 
to  the  'assessor  shall  be  at  a  time  not  more  than  twenty 
days  from  the  date  of  its  receipt  instead  of  not  less  than 
twenty  days  as  the  statute  now  provides.  In  view  of  the 
fact  that  we  now  require  the  assessor  to  finish  his 
assessment  two  weeks  earlier,  we  believe  that  where 
taxpayers'  statements  are  required  at  all,  they  ought  to 
be  promptly  furnished. 

Sections  20  and  21  cover  the  provisions  contained  in 
Section  2521,  Compiled  Laws,  and  refer  to  the  penalty 
for  refusal  to  obey  the  assessor's  subpoena  or  to  make 
a  statement  under  oath  respecting  his  property  by  the 
taxpayer. 


60 

We  are  not  in  favor  of  invoking  the  aid  of  the 
criminal  department  of  our  courts  to  enforce  the  collec- 
tion of  taxes,  and  believe  that  penalties  of  that  sort 
breed  a  contempt  for  the  law  from  the  fact  that  no  at- 
tempt, so  far  as  we  are  advised,  has  ever  been  made  to 
enforce  them.  Therefore,  whenever  the  statutes  provided 
punishment  for  an  offense  connected  with  the  collection 
of  revenue,  save  only  those  for  mal-administration  by 
public  officials  of  public  money,  we  have  sought  as 
in  this  instance  to  provide  a  penalty  in  additional  taxation 
rather  than  by  fine  and  imprisonment,  or  either. 

Sections  22  to  32  inclusive,  we  have  adopted  without 
change. 


INTEREST  IN  STATE .  LANDS— SECTIONS  33  TO  41, 

INCLUSIVE. 

We  have  found  that  considerable  difficulty  has  been 
encountered  in  different  parts  of  the  State  in  collecting 
the  tax  on  interest  in  State  Lands.  Many  of  the  holders 
of  such  interests  have  refused  to  pay  the  taxes  levied 
and  assessed  'against  them,  and  in  many  instances  the 
several  counties  have  attempted  to  sell  lands,  the  title 
to  which  still  remained  in  the  State.  Of  course  these  sales 
have  conveyed  no  title,  and  there  is  at  least  a  possibility 
that  in  such  cases,  not  only  the  original  tax  but  the 
amount  of  costs  incurred  in  making  such  sales  has  been 
wholly  lost.  In  these  sections  now  under  consideration, 
we  have  attempted  to  provide  a  method  by  which  these 
taxes  must  surely  be  recovered.  The  sections  themselves 
are  self-explanatory,  and  we  think  need  no  further  dis- 
cussion. 


61 

SECTIONS  42  TO  51,  INCLUSIVE— WATER  RIGHTS. 

Under  the  Constitution,  ditches,  canals,  reservoirs, 
pipes  and  flumes  owned  and  used  by  individuals  or 
corporations  for  irrigating  lands  owned  by  such  individuals 
or  corporations,  or  the  individual  members  thereof,  shall 
not  be  separately  taxed,  as  long  as  they  shall  be  owned 
and  used  exclusively  for  such  purpose. 

Under  this  Constitutional  provision,  we  find  that 
it  is  very  rarely  that  irrigating  works  or  shares  in  canal 
or  irrigating  companies  are  assessed  in  this  State.  In 
fact  we  have  found  but  two  instances  where  such  property 
is  assessed,  and  in  one  of  those  we  find  the  land  to  be 
assessed  at  a  low  valuation  on  account  of  the  assessment 
of  shares  of  water  stock. 

A  large  portion  of  the  water  rights  in  this  State 
are  liable  to  taxation  under  the  Constitution.  There  are 
many  instances  where  the  water  is  owned  by  individuals 
or  corporations  who  have  little  or  no  land  and  who 
derive  revenue  from  the  leasing  of  the  water. 

There  are  many  other  instances  where  parties  own 
more  water  than  is  necessary  to  irrigate  their  lands,  and 
who  derive  a  revenue  from  leasing  a  portion  of  their 
water  to  their  less  fortunate  neighbors. 

We  know  of  no  good  reason  why  this  class  of  prop- 
erty should  be  exempt  from  taxation,  and  the  sections 
under  consideration  are  the  result  of  our  attempt  to  formu- 
late a  system  by  which  all  such  property  may  be  com- 
pelled to  pay  its  proportion  of  taxes.  We  have  made 
the  system  as  simple  as  possible  to  still  accomplish  the 
desired  result,  and  we  believe  the  enforcement  of  these 
provisions  will  place  on  the  assessment  rolls  of  the  State 
a  large  amount  of  property  that  has  heretofore  entirely 
escaped. 


62 

SECTIONS  52  TO  73,  INCLUSIVE. 

In  these  sections  we  have  classified  the  duties  of 
the  State  Board  of  Equalization  in  relation  to  assessments 
to  be  made  by  it.  In  doing  so,  we  have  transposed  a 
number  of  the  sections  in  the  existing  laws,  and  have  made 
a  number  of  minor  changes  not  necessary  to  particularly 
refer  to  here.  The  principal  changes  which  we  recommend 
refer  to  the  assessment  of  mines  and  railroads. 

Whether  correctly  or  incorrectly,  the  State  Board  of 
Equalization  has  heretofore  construed  the  cost  of  develop- 
ment work  as  one  of  the  items  properly  deductible  in 
determining  the  amount  of  the  net  proceeds  of  a  mine. 

We  have  stated  at  some  length,  in  our  Preliminary 
Report,  which  is  printed  herewith,  our  reasons  for  our 
belief  that  heretofore  mines  have  not  borne  their  fair 
share  of  the  public  burden,  and  since  the  publication 
of  that  report,  we  have  seen  no  occasion  to  revise  the 
conclusions  we  then  reached. 

We  consider  work  done  for  the  development  of  a  mine 
to  be  in  the  nature  of  an  investment  rather  than  an 
expense,  and  we  see  no  good  reason  why  the  cost  of  de- 
velopment work  should  be  deducted  in  order  to  determine 
the  amount'-  of  net  proceeds.  At  the  same  time  we 
believe  that  we  have  been  liberal,  and  have  recommended 
that  any  work  which  tends  to  more  economically  mine 
or  bring  to  the  surface  ore  from  known  ore  bodies,  even 
though  at  the  same  time  it  might  be  in  the  nature  of 
development  work,  may  be  charged  to  the  cost  of  extrac- 
tion, and  the  expense  thereof  deducted  accordingly. 

We  fully  recognize  the  fact  that  the  framers  of  the 
Constitution,  in  providing  for  the  taxation  of  the  net 
proceeds  of  mines,  had  in  view  the  fostering  and  en- 
couraging of  the  mining  industry,  and  we  have  no  desire 
to  attempt  to  override  the  plain  intent  of  constitutional 
provisions. 


63 

We  insist,  however,  that  the  term  ''net  proceeds" 
must  be  defined  by  the  Legislature,  and  we  believe  the 
definition  we  have  suggested  to  be  well  within  the  spirit 
and  intent  of  the  Constituion. 

A  number  of  prominent  mine  owners  of  the  State 
have  insisted  to  us  that  this  provision  is  unjust  and  unfair. 
We  have  patiently  and  with  open  minds  listened  to  what 
they  have  had  to  say  in  this  connection,  but  they  have 
failed  to  convince  any  one  of  us  that  the  provisions  we 
have  incorporated  in  the  statutes  are  not  just  and  proper. 

In  relation  to  railroads  assessable  by  the  State  Board 
of  Equalization,  we  believe  that  assessments  heretofore 
have  been  confined  too  closely  to  a  physical  valuation 
basis.  We  believe  that  the  physical  value  of  the  property 
of  a  railroad,  street  car,  telegraph  or  telephone  company, 
represents  probably  a  minor  fraction  of  its  value.  The 
difference  between  the  physical  value  and  the  actual 
value  of  such  property  has,  for  want  of  a  better  term, 
been  denominated  its  franchise  value,  and  an  attempt  has 
been  made  by  the  State  Board  of  Equalization  to  reach 
a  portion  of  this  additional  value  by  making  a  separate 
assessment  and  denominating  it,  the  franchise  value. 

We  believe  that  this  method  is  inaccurate,  misleading 
and  unscientific.  We  do  not  believe  that  it  is  possible  or 
at  any  rate  practicable  to  segregate  the  different  items 
which  go  to  make  up  the  total  value  of  a  public  service 
corporation.  We  have,  therefore,  in  Section  69,  provided 
that  in  assessing  such  corporations  and  for  the  purpose 
of  determining  the  fair  cash  value  of  their  property,  the 
State  Board  of  Equalization  shall  inform  itself  as  fully 
as  may  be  of:        ' 

First.  The  actual  value  of  the  tangible  property  of 
the  corporation  within  this  State. 

Second.  The  valuation  placed  by  the  investing  public 
on  the  property  of  the  corporation  as  evidenced  by  the 


64 

market  price   of   its   outstanding  stocks   and   bonds,    plus 
its  floating  indebtedness. 

Third.  The  total  amount  of  dividends  paid,  indebted- 
ness retired,  and  the  amounts  added  to  surplus,  reserve 
and  sinking  funds. 

Fourth.  The  net  earnings  of  the  corporation  for 
the  year. 

Fifth.    Its  gross  earnings. 

From  the  information  thus  secured,  the  State  Board  of 
Equalization  shall  determine  what,  in  their  judgment,  is 
the  fair  cash  value  of  the  property  of  the  corporation. 

We  believe  that  with  this  information  at  hand,  the 
assessments  by  the  State  Board  of  Equalization  would 
more  nearly  approximate  the  value  of  the  property  of 
these  corporations  than  has  heretofore  been  the  case. 


SECTIONS  74  AND  75. 

These  sections  provide  that  the  County  Assessor  in 
assessing  public  service  corporations  all  in  one  county 
shall  inform  himself  in  the  same  manner  and  to  the 
fullest  extent  possible,  as  is  required  of  the  State  Board 
of  Equalization  in  assessing  inter-county  corporations. 
A  compliance  with  the  provisions  of  these  sections  will, 
we  believe,  enable  the  assessor  to  make  a  more  intelligent 
and  equitable  assessment  of  this  class  of  property. 


SECTIONS  76  TO  81,  INCLUSIVE. 

These  sections  provide  for  the  assessment  of  bank 
stock,  and  we  have  adopted  Sections  2507  to  2512,  inclusive, 
without  material   change. 


65 

We  are  inclined  to  believe  that  in  the  past  some  banks 
have  evaded  a  portion  of  their  just  share  of  the  taxes. 
If  this  be  true,  it  is  not  the  fault  of  the  law  but  rather 
of  its  administration.  The  powers  of  the  assessor  are 
ample,  and  if  in  any  instance  the  assessor  has  failed  to 
place  a  fair  valuation  on  the  stock  of  any  bank  in  this 
State,  the  fault  has  been  with  the  assessor. 

Sections  82,  83  and  84  are  simply  re-enactments 
of  the  original  statutes. 


TRANSIENT  STOCK— SECTIONS  85  TO  94, 
INCLUSIVE. 

There  is  no  class  of  property  subject  to  taxation 
concerning  which  the  laws  have  been  so  often  revised 
and  changed  as  the  laws  in  relation  to  the  taxation  of 
transient  stock.  The  subject  has  been  one  of  great  diffi- 
culty, and  the  administration  of  any  law  that  we  have  had 
on  the  subject  has  been  far  from  satisfactory. 

One  of  the  chief  objections  to  the  present  law  arises 
from  the  difficulties  the  several  counties  find  in  making 
settlements  among  themselves  for  their  proportionate  parts 
of  the  tax  collected.  There  is  scarcely  a  county  in  the 
State  that  has  not  unsettled  claims  against  some  other 
county  growing  out  of  the  transient  stock  tax,  or  which  is 
not  resisting  the  claim  of  some  other  county  growing 
out  of  the  same  matter. 

Under  the  present  law  it  is  safe  and  easy  for  the 
stock  owner  to  favor  one  county  above  another  by  delaying 
his  reports  or  reporting  his  entry  into  a  county  at  a  date 
later  or  earlier  than  the  true  date. 

Under  the  system  which  we  recommend,  the  certifi- 
cates   of    entry    into    the    county    are    forwarded    to    the 

a-TR 


66 

county  assessor,  by  him  recorded  in  a  book  kept  for 
that  purpose  and  then  forwarded  to  the  State  Board  of 
Equalization.  Thus  at  the  end  of  the  year  the  State 
Board  of  Equalization  has  a  record  of  where  every  par- 
ticular flock  in  the  State  was  located  at  all  times  during 
the  year.  Having  this  record,  the  Board  can  readily 
determine  just  how  much  of  the  transient  herd  t^x  each 
county  is  entitled  to. 

The  State  Board  of  Equalization  at  the  close  of  the 
year,  acting  as  a  sort  of  clearing  house,  requires  each 
county,  that  has  collected  more  than  its  just  proportion 
of  this  tax,  to  forward  to  it  a  warrant  for  the  amount 
of  the  excess.  When  the  excess  is  collected  from  all  the 
counties,  the  Board,  of  course,  has  on  hand  sufficient  funds 
to  remit  to  each  county,  which  has  failed  to  collect  the 
amount  of  its  pro  rata  share,  the  amount  of  such  deficiency. 
This,  it  seems  to  us,  will  obviate  the  difficulty  which 
has  heretofore  existed  in  securing  prompt  and  fair  settle- 
ments between  the  counties. 

The  success  of  this  system  is  necessarily  dependent 
on  securing  from  the  stockmen  prompt  reports  of  their 
entry  into  a  county.  Therefore,  in  order  to  be  successful, 
the  system  must  provide  some  method  that  will  insure 
the  prompt  filing  of  these  reports. 

We  have  heretofore  expressed  our  aversion  to  the  use 
of  a  system  of  fines  or  imprisonments  for  the  enforcement 
of  any  duty  imposed  on  the  taxpayer. 

We  believe  that  the  interest  of  the  taxpayer  should 
require  prompt  compliance  with  the  statutory  require- 
ments, and  that  at  the  same  time  it  should  be  made  to  the 
interest  of  the  county  to  enforce  such  prompt  compliance. 

We  have  therefore  provided  that  if  the  stock  owner 
shall  fail,  for  the  statutory  period,  to  file  the  required 
certificate,  the  assessor  of  the  county  in,  which  he  is  so 


67 

delinquent  shall  assess  the  stock  so  found  therein,  and 
shall  collect  the  tax  without  reference  to  the  fact  that 
the  same  property  has  been  theretofore  assessed  in  another 
county,  and  that  the  tax  collected  under  such  circumstances 
shall  not  be  subject  to  distribution  with  any  other  county. 
In  other  words,  the  penalty  to  the  stock  owner  for  failure 
to  report  is  the  danger  that  he  will  have  an  additional 
tax  to  pay  on  the  property  for  his  neglect,  and  that  the 
county  as  a  premium  for  diligence  in  securing  these 
reports  is  entitled  to  the  total  amount  of  the  additional 
tax  which  it  recovers  under  such  circumstances. 

The  objection  will  undoubtedly  be  made  that  this 
penalty  for  failure  to  file  the  certificate  is  too  severe, 
and  that  cases  might  arise  where  it  would  be  impracticable 
or  impossible  to  file  the  certificate  within  the  statutory 
time,  but  from  our  investigation,  we  have  no  doubt  but 
that  it  will  be  possible  for  all  stock  owners  in  good  faith 
desiring  to  comply  with  the  law,  to  do  so  without  any 
unnecessary  hardship. 

We  do  not  believe  that  this  penalty  should  be  changed 
or  modified.  We  believe  the  satisfactory  working  of 
the  system  is  in  a  large  measure  dependent  on  enforcing 
the  provisions  relating  to  the  prompt  filing  of  these 
certificates,  and  that  it  will  be  better  to  retain  the  law 
we  have  than  to  adopt  the  one  we  propose  unless  the  filing 
of  these  certificates  is  enforced  by  a  sufficiently  stringent 
penalty. 

Sections  95  to  104,  inclusive,  are  re-enactments  of 
existing  statutes. 


SECTION  105. 

In  this  section  we  have  required  the  assessor  to  com- 
plete his  assessment  roll  and  deliver  the  same  to  the 
treasurer  on  the  second  Monday  in  April  instead  of  the 


68 

first  Monday  in  May  as  the  law  now  requires.  The  rea- 
sons for  making  this  change  have  been  heretofore  ex- 
plained. We  have  also  amended  Section  105  by  eliminat- 
ing the  oath  that  the  assessor  has  heretofore  been  required 
to  endorse  and  subscribe  on  the  assessment  roll. 

In  order  that  there  may  be  no  occasion  to  call  atten- 
tion to  several  other  instances  where  we  have  stricken 
out  requirements  for  oaths,  we  suggest  that  the  assessor, 
as  well  as  other  officers  connected  with  the  collection 
of  the  public  revenue,  takes  an  oath  of  office  to  the  effect 
that  he  will  discharge  the  duties  of  his  office  with  fidelity, 
and  the  presumption  of  law  always  is  that  he  has  done 
so,  and  whether  he  has  or  not,  the  subscribing  of  an 
additional  oath  neither  adds  anything  to  the  evidence  that 
the  work  has  been  performed  according  to  law  nor  makes 
the  work  valid  if  it  is  otherwise  invalid. 

Sections  106  and  107  have  been  adopted  practically 
without  change. 

In  Section  108,  the  penalty  for  failure  of  the  assessor 
to  complete  his  assessment  roll  and  deliver  the  same  to 
the  county  treasurer  within  the  time  prescribed  by  law, 
or  if  he  fails  to  report  to  the  State  Board  of  Equalization 
within  a  reasonable  time,  has  been  changed  from  one 
thousand  dollars  to  three  months'  salary.  We  believe 
that  there  is  no  occasion  for  retaining  in  the  law  penalties 
which  there  is  no  intention  to  enforce.  One  thousand 
dollars  is  more  than  the  entire  annual  salary  of  some  of 
the  assessors  of  this  Stae,  and  the  provision  which  re- 
quires so  heavy  a  penalty  for  an  offense  not  involving 
moral  turpitude  is  evidently  not  intended  to  be  enforced. 
A  provision  requiring  the  forfeiture  of  three  months' 
salary  is  not  unreasonable,  and  the  assessor  will  doubtless 
stand  in  more  dread  of  the  statute  as  amended  than  he 
ever  did  of  the  original  section. 


69 

Section  109  provides  for  the  mailing  of  the  valuation 
notice  at  an  earlier  date  than  has  heretofore  been  re- 
quired, and  Section  110  provides  a  method  of  preserving 
evidence  that  such  notice  has  been  mailed.  Heretofore 
there  has  been  no  method  provided  by  law  for  preserving 
a  record  of  the  mailing  of  the  valuation  and  tax  notices, 
and  if  the  law  is  to  require  the  mailing  of  such  notices, 
it  certainly  ought  to  provide  for  some  record  to  the  effect 
that  the  notices  have  been  sent. 

Sections  109  to  124,  inclusive,  are  devoted  to  equaliza- 
tion and  apportionment,  and  except  as  noted  above  are 
practically  a  rearrangement  and  re-enactment  of  existing 
statutes.  The  date  of  the  first  meeting  of  the  County 
Board  of  Equalization  is  changed  from  the  first  Monday 
in  June  to  the  third  Monday  in  May,  and  it  is  required 
to  finish  its  work  not  later  than  the  second  Monday  in 
June  instead  of  the  fourth  Monday  in  June  as  now  pro- 
vided. These  changes  have  been  made  as  we  have 
heretofore  indicated,  in  order  to  more  equitably  distri- 
bute the  time  within  which  the  several  officials  are  required 
to  perform  their  duties. 


LEVY    AND    LIEN    OF    TAXES— SECTIONS    125    TO 
144,    INCLUSIVE. 

Under  this  heading  we  have  collected  existing"  stat- 
utes relating  to  the  levy  and  lien  of  taxes  as  well  as 
our  •  recommendations  for   additional   legislation. 

Under  the  existing  statutes  every  tax  upon  real 
property  or  improvements  has  the  effect  of  a  judgment 
against  the  owner  which  attaches  as  of  the  second  Monday 
in  January  of  the  year  for  which  the  taxes  are  levied 
and  assessed. 


70 

It  is  thus  evident  that  any  mortgage  or  other  encum- 
brance recorded  prior  to  the  second  Monday  in  January 
is  a  lien  senior  and  superior  to  the  lien  of  the  taxes  for 
that  year,  and  in  case  of  foreclosure  of  such  a  mortgage, 
where  the  owner  and  mortgagee  have  neglected  to  pay  the 
taxes  for  one  or  more  years,  and  the  property  has  been 
sold  to  the  county,  the  equity  of  the  county  in  the  property 
might  readily  be  extinguished;  in  fact,  this  has  actually 
sometimes  happened.  To  provide  against  such  a  con- 
tingency, we  have  recommended  Sections  126,  127  and 
128,  which  provide  that  taxes  are  a  paramount  lien  which 
is  not  released  until  the  taxes  are  paid  or  a  valid  decree 
entered  foreclosing  a  certificate  issued  on  the  sale  of 
the  property  for  the  non-payment  of  the  delinquent  tax. 

We  have  explained  in  an  earlier  portion  of  this 
report  why  a  majority  of  this  Commission  has  not 
thought  it  advisable  at  this  time  to  make  any  recom- 
mendations limiting  the  amount  of  the  levies  not  allowed 
by  law  to  the  several  taxing  jurisdictions.  We .  have 
therefore  simply  collected,  under  one  heading,  all  the 
statutes  relating  to  the  general  levies  without  making 
any  material  changes  in  the  statutes. 

The  principal  change  which  we  recommend  under 
this  subdivision  will  be  found  in  Section  138,  referring  to 
levies  by  cities.  In  subdivisions  two  and  five,  it  seems 
to  be  within  the  power  of  the  City  Council  to  make  a 
levy  of  twenty  mills,  ten  mills  for  the  purpose  of  purchas- 
ing w^ater  or  constructing  water  works,  and  ten  mills  to 
construct  and  maintain  gas  works,  electric  light  works, 
telephone  lines,  street  railways  or  bath  houses.  There 
seems,  to  be  no  restriction  on  the  power  of  the  council  to 
make  these  levies,  and  we  have  deemed  it  wise  to  recom- 
mend, as  we  have  done,  that  before  such  levies  may  be 
made  for  these  unusual  expenditures,  that  the  question  of 
making  the  levy  be  submitted  to  the  qualified  taxpayers 
of  the  city  at  a  special  election  to  be  called  for  that 
purpose. 


71 

COLLECTIONS— SECTIONS   145   TO  218,   INCLUSIVE. 

In  the  procedure  relating  to  the  collection  of  taxes, 
we  recommend  an  entire  remodeling  of  the  law.  We  have 
retained  a  number  of  the  original  sections  of  the  statute, 
have  modified  others,  and  have  written  a  number  of 
entirely  new  statutes. 

In  Section  149,  the  report  of  the  county  auditor  to 
the  State  Board  of  Equalization  is  made  on  the  same 
classification  as  we  have  recommended  for  the  assessment 
roll,  thus  simplifying  the  work  of  the  auditor  in  making 
the  report  as  well  as  making  the  report  more  definite 
and  explicit  than  has  heretofore  been  required. 

In  Section  150,  we  have  required  this  certificate  to 
be  forwarded  to  the  State  Board  of  Equalization  not 
later  than  the  first  Monday  in  July  of  each  year.  This 
provision  has  been  inserted  in  order  that  the  work  of  the 
State  Board  of  Equalization  may  not  be  hampered  or 
delayed  by  reason  of  the  failure  to  receive  these  reports 
from  all  of  the  county  auditors  in  time. 

In  Section  159,  we  have  provided  the  same  method 
of  preserving  evidence  of  mailing  of  the  tax  notice  that 
was  provided  for  the  valuation  notice,  and  to  which  we 
called  attention  in  that  place. 

Heretofore  the  law,  as  interpreted  by  the  Supreme 
Court  of  this  State,  has  made  it  as  much  the  duty  of  the 
owner  of  an  undivided  interest  in  real  estate  to  pay  the 
taxes  on  the  portion  belonging  to  his  co-owners  as  it  was 
to  pay  his  own,  and  if  the  owner  of  an  undivided  in- 
terest paid  his  proportion  of  the  tax  to  the  County 
Treasurer  he  received  a  receipt  for  the  amount  paid, 
which  was  credited  on  the  entire  amount  of  the  tax  due, 
and  the  whole  property,  including  the  interest  of  the 
paying  owner,  was  sold  for  the  non-payment  of  the 
remainder. 


71 

It  would  seem  that  if  a  taxpayer  can  succeed  in  keep- 
ing his  own  taxes  paid,  he  ought  not  to  be  required  to 
suffer  for  the  default  of  those  with  whom  he  may  be 
connected  in  a  co-ownership  of  real  estate.  We  there- 
fore submit  Sections  162  and  163,  providing  that  the 
owner  of  an  undivided  interest  in  real  estate  may  free  his 
interest  from  the  lien  of  taxes  by  paying  to  the  treasurer 
his  proportionate  amount  of  such  tax. 

Taxes  have  heretofore  been  made  delinquent  on  the 
i5th  day  of  November  at  six  o'clock  p.  m.  Just  why  this 
date  was  chosen  we  have  been  unable  to  discover.  So  far 
as  the  treasurer  or  the  taxpayer  is  concerned,  there  is  no 
difference  between  the  payment  of  taxes  made  on  the 
14th  of  November  and  one  made  on  the  16th.  The 
treasurer  continues  to  receive  taxes  up  to  the  time  the 
property  is  actually  sold  for  non-payment,  the  only  differ- 
ence being  that  after  making  up  the  delinquent  list,  he 
collects  an  additional  twenty-five  cents  for  each  descrip- 
tion to  pay  the  cost  of  publication. 

This  payment  of  twenty-five  cents  insures  an  exten- 
sion of  time  of  thirty  days  or  more  within  which  the 
taxes  may  be  paid  without  any  additional  expense,  and  in 
cases  where  the  tax  amounts  to  any  considerable  sum, 
it  is  often  found  by  the  taxpayer  that  the  use  of  the 
money  during  the  period  of  such  delay  is  worth  more  to 
him  than  the  nominal  amount  collected  by  the  county  for 
publication,  and  the  result  has  been  that  many  large  tax- 
payers delay  the  payment  of  their  taxes  until  the  last 
possible  moment,  and  that  the  delinquent  list  as  pub- 
lished is  swelled  to  undue  proportions  by  reason  of  this 
condition  in  our  statute. 

We  believe  in  extending  to  the  taxpayer  every  pos- 
sible consideration  consistent  with  good  business  methods 
in  handling  the  finances  of  the  county  and  State.  We 
have  therefore  provided  in  Section  168  that  taxes  shall  be 
due    as    now    on    the    first    Monday    in    September    but 


73 

delinquent  at  twelve  o'clock  noon  on  the  Saturday  next 
prior  to  the  first  Monday  in  December  in  each  year.  This 
puts  the  delinquent  date  two  weeks  later  than  now  pro- 
vided by  law,  and  we  believe  the  provisions  of  the  next 
section,  Section  169,  will  insure  the  collection  of  ninety- 
five  per  cent  of  the  taxes  before  the  same  become 
delinquent. 

We  have  endeavored  to  make  the  term  ** delinquent 
taxes"  mean  something,  and  to  that  end  we  have  recom- 
mended that  at  delinquency  a  penalty  of  ten  per  cent  of 
the  amount  of  the  tax,  and  in  no  case  less  than  one  dollar, 
shall  be  added  to  the  amount  due,  and  collected. 

In  Section  171,  we  have  recommended  that  the  County 
Treasurer  be  required  to  close  his  office  for  the  receipt 
of  taxes  at  noon  on  the  delinquent  day,  devote  the  balance 
of  that  day  to  correcting  his  delinquent  list,  and  placing 
the  same  in  the  hands  of  the  publisher  selected  by  the 
Board  of  County  Commissioners  to  publish  the  same. 

In  Section  192,  we  recommend  that  the  office  of  the 
County  Treasurer  shall  re-open  for  the  collection  of 
taxes,  and  that  thereafter  he  shall  collect  not  only  the 
amount  of  the  tax,  but  also  the  amount  of  the  penalty  and 
the  publication  fee. 

In  Section  193  the  delinquent  date  is  made  the  time 
when  interest  commences  to  run  on  the  delinquent  taxes 
and  penalty;  and  also  provides  the  amount  thereof  and 
method  of  computation. 

The  sections  in  this  subdivision  not  particularly 
noticed  in  this  report  are  really  the  original  sections,  or 
have  been  changed  so  slightly  as,  in  our  opinion,  to  ren- 
der comment  unnecessary. 


74 
PUBLICATION— SECTIONS   197  TO  204,   INCLUSIVE. 

Believing  as  we  do  that  all  public  contracts  of  any 
considerable  magnitude  ought  to  be  awarded  to  the 
lowest  responsible  bidder,  after  due  notice  that  a  con- 
tract is  to  be  awarded,  we  have  in  Sections  197  and  198, 
recommended  that  the  County  Commissioners  be  required 
to  advertise  for  bids  from  newspapers  having  a  general 
circulation  within  their  county  for  the  publication  of  the 
delinquent  tax  list,  and  that  the  publication  be  awarded  to 
such  bidder  making  the  lowest  bid. 

In  Section  199  we  have  provided  that  the  publication 
must  be  commenced  on  the  second  Monday  in  December 
instead  of  the  first  Monday  in  December,  which  change 
of  date  is  made  necessary  by  the  fact  that  we  have  pro- 
vided that  taxes  shall  not  be  delinquent  until  twelve  o'clock 
noon  of  the  Saturday  preceding  the  first  Monday  in 
December. 

It  has  heretofore  been  the  practice  in  many,  if  not 
all,  the  counties  of  the  State  to  publish  with  the  delin- 
quent tax  list  a  description  of  the  personal  property  taxes 
due  and  unpaid,  which  are  not  a  lien  against  any  real 
estate  and  to  satisfy  which  no  sale  can  be  made  by 
virtue  of  such  publication. 

This  expense  to  the  county  and  to  the  taxpayer  is 
entirely  needless,  and  we  have  therefore  provided  in 
Sections  200  and  201  that  in  the  case  of  personal  property 
no  advertisement  shall  be  made  in  the  delinquent  tax  list, 
unless  the  taxes  due  thereon  are  a  lien  upon  real  estate 
owned  by  the  owner  of  such  delinquent  personal  property, 
and  in  that  event  the  publication  to  be  made  in  connection 
with  the  real  estate  advertised  to  be  sold. 

Heretofore  there  has  been  no  method  provided  by  law 
for  preserving  evidence  of  the  publication  of  the  delin- 
quent tax  list. 


75 

We  have  found  in  some  of  the  counties,  files  of  the 
newspaper  containing  the  delinquent  list  for  some  years, 
while  for  other  years  there  is  nothing  in  the  office  of  any 
county  official  to  indicate  that  the  delint^uent  list  had 
been  published  at  all.  Other  counties,  and  particularly 
during  the  later  years,  have  files  containing  the  delinquent 
list  together  with  the  affidavit  of  the  publisher  of  the 
fact  of  such  publication. 

Nowhere  in  the  law  is  any  provision  making  these 
ex  parte  affidavits  receivable  in  evidence,  and  when 
in  an  action  at  law  it  has  been  necessary  to  prove  the 
publication  of  the  list,  it  has  often  been  found  difficult 
to  secure  evidence  of  the  fact,  which  ought  to  be  of 
record  in  the  office  of  the  County  Treasurer. 

We  have  therefore  provided  in  Section  202  that  the 
publisher  of  the  delinquent  tax  list  shall  file  a  verified 
copy  of  the  publication,  and  have  made  the  copy  so  verified 
prima  facie  evidence  of  the  facts  therein  recited. 

In  succeeding  sections  we  have  made  the  same  pro- 
vision with  regard  to  the  publication  in  case  of  delinquent 
car  companies. 


SALE— SECTIONS  209  TO  230,  INCLUSIVE. 

In  our  re-arrangement  of  what  may  be  termed  the 
''tax  calendar,"  we  have  changed  the  date  of  the  begin- 
ning of  the  sale  from  the  third  Monday  in  December  to 
the  fourth  Monday  in  the  same  month.  Some  doubt  and 
considerable  litigation  has  resulted  from  the  fact  that  the 
present  statute,  defining  the  duties  of  the  treasurer  in 
offering  property  for  sale  and  receiving  bids  therefor, 
has  not  been  sufficiently  definite  and  certain. 

In  Section  205  we  have  endeavored  to  so  clearly  de- 
fine the  duties  of  the  treasurer  in  this  connection  that 


Id 

there   need   no   longer   be   any   doubt   as   to  the   meaning 
of  the  statute. 

In  Section  207,  in  harmony  with  Sections  162  and 
163,  we  have  provided  that  in  case  the  taxes  of  an 
undivided  interest  in  real  estate  have  been  paid,  while 
other  undivided  interests  are  delinquent,  then  only  the 
undivided  interest  belonging  to  the  delinquent  shall  be 
sold  for  the  unpaid  portion  of  the  tax. 

Heretofore  it  has  been  the  custom,  under  the  apparent 
sanction  of  the  statutes,  for  County  Treasurers  to  issue 
the  same  form  of  certificate  whether  the  sale  was  made 
to  the  county  or  to  a  purchaser.  This  has  resulted  in 
certificates  issued  to  the  county  which  do  not  accurately 
state  the  facts  in  relation  to  the  sale.  Cases  are  now 
pending  in  the  courts  of  this  State  in  which  the  validity 
of  the  title  of  the  county  is  attacked  on  the  sole  ground 
of  the  inaccuracy  of  the  statement  in  the  certificate  of 
sale. 

In  order  that  the  certificate  may  accurately  state 
the  facts,  we  have  provided  two  forms  of  certificate, 
one  to  be  issued  in  case  of  sale  to  a  purchaser,  and  the 
other  to  be  used  in  case  where  there  is  no  bid,  and  the 
sale  is  for  that  reason  made  to  the  county. 

We  consider  Section  211  one  of  the  most  important 
sections,  so  far  as  procedure  under  the  tax  laws  is  con- 
cerned, that  we  have  recommended.  This  section  makes 
the  certificates  of  tax  sale  prima  facie  evidence  of  the 
regularity  of  all  prior  proceedings  leading  up  to  the  issuing 
of  the  certificate,  and  casts  the  burden  of  showing 
failure  to  comply  with  any  of  the  jurisdictional  require- 
ments of  the  statute  on  him  who  asserts  it. 

Heretofore  the  law  has  imposed  the  burden  of  proving 
the  performance  of  every  required  act  relating  to  and 
culminating  in  the  sale  of  property  for  delinquent  taxes 


on  the  holder  of  the  tax  deed,  and  even  in  the  rare  cases 
where  all  of  the  acts  of  the  several  officials  have  been 
performed  in  proper  and  timely  manner,  owing  to  the 
system  of  records,  or  rather  lack  of  records,  permitted  by 
the  statute,  it  has  usually  been  imposed  upon  the  owner 
of  the  tax  deed  to  secure  the  necessary  proof.  The  result 
has  been  that  since  statehood  the  cases  '  sustaining  the 
validity  of  tax  deeds  in  this  State  can  be  counted  on  the 
fingers  of  one  hand. 

So  well  is  this  condition  understood  by  the  people 
of  this  State  that  a  tax  deed  has  ceased  to  be  considered 
an  encumbrance  on  real  estate,  and  investors  who  other- 
wise would  be  willing  and  anxious  to  purchase  property  at 
tax  sales,  thus  placing  the  money  due  from  the  delinquent 
property  in  the  treasury  where  it  belongs,  have  become 
disgusted  with  the  situation  and  now  decline  to  attend 
the  sales  or  to  purchase  the  property,  with  the  result  that 
the  bulk  of  all  sales  now  made  are  made  to  the  county. 

That  this  situation  is  unfortunate  and  a  serious 
reflection  on  the  laws  heretofore  in  force  is  only  too 
evident. 

As  we  stated  in  our  preliminary  report,  we  believe 
that  when  the  time  shall  come  that  the  property  owner 
has  just  cause  to  fear  that  a  tax  sale  will  divest  him  of 
the  title  to  his  property,  and  when  the  purchaser  at  a  tax 
sale  has  cause  to  believe  that  the  certificate  he  receives 
from  the  treasurer  is  something  more  than  an  invitation 
to  engage  in  a  losing  lawsuit,  then  the  number  of  tax 
sales  will  be  reduced  to  a  negligible  number  and  the 
various  taxing  jurisdictions  will  receive  the  money  to 
which  they  are  entitled  for  taxes  well  within  the  time 
provided  by  law  for  their  payment. 

When  that  time  comes,  and  we  believe  it  will  come 
immediately  upon  the  enactment  of  this  bill,  the  various 
taxing  jurisdictions  will  be  able  to  know  in  advance  that 
the  amount  of  money  called  for  by  their  levies  will  surely 


78 

be  paid.  It  will  no  longer  be  necessary  to  carry  a  large 
amount  of  unpaid  taxes  on  the  books  of  the  county,  and 
by  reason  thereof  no  allowance  as  a  margin  for  safety 
need  be  made  in  fixing  the  amount  of  the  levies,  and  the 
levies  may  therefore  be  safely  and  materially  reduced. 

The   other  sections  relating  to  the  sale   of  property 
for   delinquent  taxes   have   not   been   materially   changed. 


REDEMPTION— SECTIONS   219   TO   230,   INCLUSIVE. 

In  Section  219  we  have  reduced  the  period  of  redemp- 
tion from  four  years  to  three  years.  The  reason  for  such 
reduction  is  that  we  have  provided  for  a  foreclosure  of  the 
tax  certificate  to  take  the  place  of  the  issuing  of  the 
tax  deed,  as  hereinafter  explained  in  detail,  and  as  there 
is  a  further  period  of  six  months  allowed  after  the  entry 
of  the  decree  of  foreclosure,  and  as  the  time  in  which  a 
foreclosure  can  be  had  will  of  necessity  be  some  months, 
the  total  period  of  redemption  has  not  been  materially 
shortened,  and  in  some  cases  undoubtedly  will  be  found 
to  have  been  extended. 

We  have  also  provided  in  this  section,  in  line  with 
other  legislation  for  the  benefit  of  the  owners  of  un- 
divided interests  in  real  estate,  that  a  redemption  by  the 
owner  of  such  undivided  interest  may  be  made  by  the  pay- 
ment of  the  proper  proportion  of  the  amount  necessary 
to  redeem,  together  with  the  cost  of  redemption  certi- 
ficate. 

Further  provisions  for  the  sake  of  making  the  matter 
more  explicit  are  found  in  Sections  224,  225  and  226. 
The  other  sections  relating  to  sale  are  not  new. 


79 

FORECLOSURE— SECTIONS  231  TO  245,  INCLUSIVE. 

Under  the  present  system  at  the  expiration  of  the 
period  of  redemption  the  County  Auditor,  without  notice  to 
the  taxpayer  and  on  demand  of  the  holder  of  the  tax  sale 
certificate,  issues  to  the  holder  of  such  certificate  a  tax 
deed  which  in  theory  conveys  to  the  grantee  all  title  in 
the  described  premises  theretofore  held  by  the  person 
against  whom  the  tax  was  levied  and  assessed. 

It  has  thus  frequently  happened  that  the  owner  of 
property,  who  through  inadvertence  or  mistake  has  per- 
mitted his  property  to  be  once  sold  for  taxes,  but  who  has 
thereafter  paid  all  the  taxes  levied  and  assessed  against 
the  property,  has  discovered  that  a  tax  deed,  for  the  year 
in  which  he  had  by  such  mistake  allowed  such  property  to 
be  sold,  had  been  issued  and  he  thereby  subjected  at  least 
to  great  annoyance  and  expense  if  not  to  the  actual  loss  of 
the  property. 

For  the  double  purpose  of  giving  to  the  defaulting 
taxpayer  additional  notice  and  a  further  chance  to  make 
redemption,  and  for  giving  to  the  purchaser  at  the  tax  sale 
the  assurance  that  when  after  all  notices  required  by 
statute  have  been  given  and  the  property  still  remains 
unredeemed,  the  conveyance  he  receives  from  the  State 
will  transfer  all  the  title  held  by  the  delinquent  tax- 
payer, we  have  recommended  the  abandonment  of  the  tax 
deed  system  and  have  substituted  an  action  foreclosing  the 
tax  lien  represented  by  the  certificate  in  the  same  manner 
and  with  the  same  force  and  effect  as  is  now  provided 
for  the  foreclosure  of  mortgages  on  real  estate. 

In  this  action  we  have  been  solicitous  to  require 
actual  notice  to  be  given  to  the  delinquent  taxpayer  if  it 
be  possible  to  give  him  such  notice. 

A  large  proportion  of  tax  sales  which  have  subse- 
quently gone  to  deed  heretofore  have  been  of  property  be- 


80 

longing  to  non-residents  of  the  county  in  which  the 
property  is  located,  and  in  many  instances  the  holders 
have  been  non-residents  of  the  State.  In  such  cases  of 
necessity  the  notice  of  foreclosure  will  be  by  publication. 

Under  recent  decisions  of  the  Supreme  Court  of  this 
State  the  jurisdictional  allegations  in  an  affidavit  for  pub- 
lication of  summons  under  certain  conditions  are  somewhat 
uncertain,  and  the  exercise  of  judicial  interpretation  as  to 
the  sufficienqy  of  any  particular  affidavit  is,  in  our  judg- 
ment, given  too  wide  a  latitude. 

We  have  therefore  been  at  some  pains  to  define  and 
prescribe  accurately  what  the  affidavit  in  such  cases  must 
show,  and  while  our  duties  are  limited  to  recommending 
legislation  in  connection  with  public  revenue,  we  never- 
theless take  this  opportunity  of  recommending  that  the 
general  statutes  referring  to  the  service  of  summons  by 
publication  be  amended  in  conformity  with  our  recom- 
mendations here. 

The  State  of  Washington  has  had  in  force  for  a 
number  of  years  a  provision  requiring  the  foreclosure  of 
tax  sale  certificates,  and  from  conversation  and  corres- 
pondence with  tax  officials  of  that  State  we  learn  that 
the  system  is  working  to  their  entire  satisfaction. 

The  procedure  we  have  recommended  differs  some- 
what from  that  of  Washington,  but  we  believe  the  method 
we  have  adopted  is  more  appropriate  under  bur  laws  and 
conditions  than  would  be  the  exact  procedure  adopted  by 
our  sister  State. 


STATE   BOARD  OF   EQUALIZATION— SECTIONS   246 
TO  253,  INCLUSIVE. 

We  believe  the  importance  of  the  State  Board  of 
Equalization  in  the  revenue  scheme  of  the  State  has  not 
been  fully  appreciated. 


81 

The  functions  of  this  Board  are  important  and  their 
proper  and  careful  exercise  is  a  matter  of  concern  to 
every  taxpayer  in  the  State.  To  the  duties  already 
required  of  the  Board,  we  have  added  others,  and  in  doing 
so  have  agreed  to  recommend  that  the  number  of  the 
members  of  the  Board  be  reduced  from  four  w  three;  that 
one  member  be  appointed  each  alternate  year  to  serve  for 
a  term  of  six  years,  thus  keeping  on  the  Board  at  all 
times  two  members  who  have  had  at  least  two  years' 
experience;  and  that  the  salaries  of  the  members  be  fixed 
at  a  sum  that  will  insure  the  services  of  competent  men 
who  will  give  all  of  their  time  to  the  work  of  the  Board. 

The  amount  of  the  salary  we  have  fixed  at  thirty- 
six  hundred  dollars  per  annum.  This,  in  our  opinion,  is 
the  very  least  that  should  be  allowed,  and  we  believe  that 
a  salary  of  forty-five  hundred  or  five  thousand  dollars 
per  annum  would  prove  to  be  money  well  expended. 

In  addition  to  the  duties  already  required  of  the 
Board,  we  have  added  a  requirement  that  they  continue 
and  keep  up  the  work  of  this  Commission,  whose  existence 
will  terminate  with  the  filing  of  this  report,  by  Iceeping 
in  touch  with  the  tax  legislation  in  other  States,  and 
the  results  of  the  study  and  investigations  of  tax  experts 
in  this  and  other  countries;  to  make  recommendations 
from  time  to  time  of  changes  in  the  revenue  laws  deemed 
by  such  Board  to  be  necessary  or  proper,  and  to  provide 
for  and  hold  district  conventions  of  county  officials 
for  consideration  and  discussion  of  questions  affecting 
taxation  and  kindred  matters  in  different  parts  of  the 
State  from  time  to  time. 

The  requirement  to  take  charge  of,  record  and  report 
on  the  affidavits  concerning  the  true  consideration  in 
deeds,  which  is  discussed  in  a  later  portion  of  this  report, 
will  also  add  considerable  labor  and  responsibility  to  th^ 
Board. 


6.TR 


82 

Then  if  the  minority  report  of  one  of  the  members 
of  this  Commission  relating  to  the  appointment  of  county 
assessors  by  the  State  Board  of  Equalization  is  adopted, 
such  provision  will  add  greatly  to  the  duties  and  responsi- 
bility of  the  Board. 

It  will  be  noted  that  we  have  not  recommended  any 
change  in  the  method  of  appointing  the  members  of  the 
State  Board  of  Equalization.  We  are  aware  that  there 
has  recently  been  more  or  less  agitation  of  the  question 
as  to  whether  or  not  members  of  this  Board  ought  to 
be  elected  by  the  people  rather  than  appointed  by  the 
Governor.  Attaching,  as  we  do,  great  importance  to  the 
possession  of  special  training  and  knowledge  by  the  mem- 
bers of  this  Board;  and  appreciating  the  importance  and 
magnitude  of  the  service  they  are  required  to  perform 
to  the  State;  and  believing  that  the  present  practice  of 
keeping  the  Board  non-partisan  in  its  composition  is  one 
of  the  strongest  safeguards  to  the  people  that  the  work 
will  be  done  fairly,  equitably,  and  to  the  interest  of  all  tlie 
people  of  the  State,  we  would  much  regret  to  see  the  day 
when  the  office  should  be  made  a  reward  for  partisan 
political  activity.  Our  belief  that  the  Governor  of  the  State 
can  and  will  select  better  qualified  men  for  these  positions 
than  would  ordinarily  be  elected  is  not  due  to  any  distrust 
of  the  people  of  the  State,  but  rather  to  the  fact  that  from 
the  very  nature  of  things  the  general  public  cannot  be 
expected  to  take  the  time  to  inform  itself  as  to  the  quali- 
fications of  a  man  for  a  position  requiring  special 
knowledge. 

One  of  the  first  things  insisted  upon  by  modern 
political  economists  as  a  much  needed  measure  of  reform 
is  the  short  ballot.  What  with  the  Australian  ballot  as 
big  as  a  blanket  and  the  complicated  voting  machine  with 
its  system  of  knobs,  levers  and  ropes,  confined  in  the 
recesses  of  a  not  too  well  lighted  booth,  the  chances  for 
the  average  voter  to  make  an  intelligent  selection  from 
among  the  vast  number  now  presented  for  his  consider- 
ation are  reduced  to  a  minimum. 


83 

Representative  government  is  none  the  less  represen- 
tative because  a  large  portion  of  the  executive  officers 
are  appointed  by  officials  elected  by  the  people. 

We  believe  experience  shows  that  where  the  respon- 
sibility is  confined  by  the  short  ballot  to  a  few  elective 
officers,  they  being  responsible  not  only  for  the  conduct 
of  their  own  offices  but  for  the  conduct  of  those  whom 
they  are  required  by  law  to  appoint,  that  a  higher  state  of 
efficiency  in  public  office  has  resulted  accompanied  by  a 
decreased  cost  for  such  improved  service. 

For  the  reasons  given,  we  believe  that  the  best  in- 
terests of  the  State  will  be  subserved  by  a  continuation 
of  the  policy  of  a  non-partisan  State  Board  of  Equalization 
appointed  by  the  Governor  of  the  State. 


SETTLEMENTS   AND   REPORTS— SECTIONS   254   TO 
265,   INCLUSIVE. 

We  have  here  simply  collected  in  one  place  the  sections 
heretofore  scattered  through  the  statutes  relating  to 
settlements  and  reports  of  tax  officials.      — 


MISCELLANEOUS— SECTIONS  266  TO  277, 
INCLUSIVE. 

Section  267,  in  carrying  out  the  tax  number  system 
heretofore  referred  to,  simply  provides  that  the  tax  num- 
ber shall  be  a  sufficient  description  of  real  estate  in  any 
instrument  in  connection  with  tax  proceedings. 

Other  miscellaneous  provisions  are  simply  a  collection 
of  existing  laws. 


84 
SUPPLEMENTAL     BILLS. 

A  number  of  new  provisions  and  amendments  to  exist- 
ing statutes  which  we  desire  to  recommend  we  have,  for 
various  reasons,  thought  best  not  to  incorporate  in  the 
general  bill,  but  to  submit  for  your  consideration  in  the 
form  of  separate  bills. 

The  reasons  for  submitting  them  in  this  form  is  not 
that  we  have  any  doubt  as  to  the  advisability  of  their 
enactment,  but  because  they  are  in  some  instances  amend- 
ments of  statutes  outside  the  general  title  relating  to 
revenue,  and  others  if  they  might  properly  be  included 
in  that  title  would  come  under  the  heading  of  "Miscel- 
laneous Provisions,"  and  it  is  therefore  simply  as  a 
matter  of  convenience  and  not  because  we  consider  them  of 
minor  importance  that  we  recommend  them  in  this  form. 


AFFIDAVITS    AS    TO   THE    TRUE    CONSIDERATION 

OF    DEEDS. 

This  act  provides  that  no  instrument  affecting  the 
title  to  land  is  entitled  to  record  unless  accompanied 
by  an  affidavit  stating  that  the  consideration  named 
J;herein  is  the  true  consideration,  or  if  such  be  not  the  Tact, 
then  stating  what  the  true  consideration  is.  This  affi- 
davit is  not  to  be  recorded,  but  to  be  forwarded  to  the 
State  Board  of  Equalization,  which  keeps  a  record  of  all 
such  affidavits  and  forwards  the  information  thereby  con- 
veyed to  the  several  county  assessors. 

We  believe  that  within  a  very  short  time  the  enforce- 
ment of  this  statute  will  place  in  the  hands  of  the 
State  Board  of  Equalization  a  mass  of  accurate  informa- 
tion concerning  real  estate  values  throughout  the  State 
that  will  be  of  the  utmost  importance  and  assistance  in 
the  equitable  assessment  of  all  such  property. 


85 

We  had  at  first  contemplated  requiring  such  instru- 
ments to  state  the  true  consideration,  and  not  providing 
for  the  filing  of  an  affidavit,  but  believing  that  the  law 
would  more  likely  be  evaded  if  no  affidavit  were  required, 
and  recognizing  the  fact  that  there  may  be  at  times 
legitimate  business  reasons  why  the  parties  to  such  instru- 
ments prefer  not  to  have  the  true  consideration  appear 
therein,  we  decided  to  recommend  the  requirement  pro- 
viding for  the  affidavit,  and  leaving  the  parties  to  state 
the  true  consideration  in  the  instrument  itself  or  not,  as 
^  they  may  elect. 


AN  ACT  EXTENDING  THE  TERM  OF  COUNTY 
TREASURERS. 

Under  the  present  system  of  requiring  the  County 
Treasurer  to  surrender  his  office  on  the  first  Monday 
in  January,  there  occurs  a  change  in  the  office  at  the 
busiest  time  of  the  year  while  the  treasurer  is  engaged 
in  the  collection  of  the  taxes  levied  for  the  previous 
year,  and  before  he  can  by  any  possibility  get  the  affairs 
of  his  office  and  the  business  of  the  preceding  year  in 
shape  to  turn  over  to  his  successor.  It  thus  happens 
that  with  every  change  of  County  Treasurer  the  incoming 
treasurer  has  to  close  up  and  settle  the  business  of  his 
predecessor. 

These  conditions  have  induced  us  to  recommend  that 
all  County  Treasurers  elected  at  the  general  election  in 
1912,  shall  hold  office  until  the  first  Monday  in  March, 
1915,  and  that  subsequently  elected  County  Treasurers 
shall  hold  office  for  two  years,  the  term,  however,  com- 
on  the  first  Monday  in  March  instead  of  the  first  Monday 
in  January. 


86 

AN  ACT  EXTENDING  THE  TERMS  OF  COUNTY 
ASSESSORS. 

The  County  Assessors  upon  taking  office  find  them- 
selves immediately,  and  often  without  previous  experience, 
face  to  face  with  their  most  important  duties. 

We  believe  that  the  assessor  before  commencing  his 
assessment  should  have  time  to  familiarize  himself  with 
the  duties  and  needs  of  his  office,  and  have  therefore 
provided  that  the  assessors  elected  at  the  general  election 
in  1912  shall,  hold  office  until  the  first  Monday  in  July, 
1915,  thus  extending  the  terms  of  the  present  assessors 
six  months. 

In  our  Preliminary  Report  we  had  something  to  say 
in  relation  to  our  conception  of  the  importance  of  the 
office  of  County  Assessor.  We  see  no  occasion  to  modify 
what  we  there  said,  and  believing  as  we  do  that  ex- 
perienced assessors  are  of  more  value  to  the  State  than 
those  who  are  inexperienced,  we  have  agreed  that  the 
term  of  tlie  County  Assessor  ought  to  be  extended  to  four 
years,  and  so  recommend. 


SALARIES   OF   COUNTY   ASSESSORS. 

We  believe  that  the  salaries  of  County  Assessors  are 
too  low.  No  county  official,  in  our  judgment,  has  services 
to  perform  that  more  nearly  touch  the  interests  of  all  the 
people  than  the  assessor.  We  have  therefore  recommended 
that  Section  2057,  Compiled  Laws  of  Utah,  as  amended 
by  Chapter  79,  Laws  of  1911,  be  so  amended  that  the 
maximum  salaries  allowed  to  the  assessor  shall  be  the 
same  as  that  fixed  for  the  clerk.  We  have  made  no  other 
change  in  this  section. 


87 

In  this  connection  we  desire  to  call  attention  to  the 
fact  that  under  the  present  statute  in  a  number  of  in- 
stances the  maximum  salaries  allowed  in  counties  coming 
within  class  11  are  higher  than  those  allowed  in  class  10. 

This  does  not  seem  to  be  in  harmony  with  the  spirit 
of  the  entire  statute,  but  inasmuch  as  we  do  not  con- 
strue recommendations  to  correct  such  inequalities  to  come 
within  the  province  of  this  Commission,  we  simply  call 
attention  to  the  fact  without  making  any  recommendations 
in  reference  thereto. 


LICENSE  TAX  FOR  COMMERCIAL  AGENCIES. 

There  are  in  this  State  a  number  of  corporations  en- 
gaged in  the  Mercantile  Agency  business  that  do,  accord- 
ing to  common  report,  a  very  large  and  lucrative  business 
without  contributing  any  appreciable  amount  toward  pay- 
ing the  expenses  of  the  State  under  whose  protection  they 
have  built  up  so  large  and  flourishing  a  business. 

Believing  that  a  requirement  to  pay  in  proportion 
to  ability  is  equitable  taxation  we  have  sought  to  correct, 
in  a  measure  at  least,  this  inequality  by  providing  for 
a  State  License  Tax  to  be  assessed  against  such  cor- 
porations. The  amount  which  we  have  fixed  as  two 
hundred  fifty  dollars  may  be  too  low.  We  certainly  be- 
lieve it  is  not  too  high. 


SPECIAL  ASSESSMENTS  AGAINST  CORPORATIONS. 

This  act  simply  provides  that  public  service  cor- 
porations occupying  the  public  streets  or  highways  of  the 
State    shall    contribute    their    just    proportion    of    special 


assessments  levied  for  the  purpose  of  improving  such 
streets  or  highways.  We  can  see  no  good  reason  why 
such  a  corporation  making  a  greater  use  of  the  highway 
than  any  one  abutting  owner  should  not  be  required  to 
pay  its  share  of  the  cost  of  improving  such  highway,  even 
though  the  amount  equitably  assessable  against  such  cor- 
poration be  small. 


POLL  TAX. 


The  two  succeeding  bills  are  amendments  of  existing 
statutes,  and  are  so  amended  as  to  repeal  all  authority  for 
levying  and  collecting  poll  tax. 

in  our  Preliminary  Report  we  give  our  reasons  for 

believing  that  the   poll  tax   ought   to   be   abolished,    and 

these    amendments    are  recommended    in    harmony    with 
that  belief. 


MORTGAGE  BROKERS. 

There  are  quite  a  large  number  of  corporations,  firms 
and  individuals  doing  business  in  this  State  in  loaning 
money  to  residents  of  the  State  on  real  estate  security. 
Many  of  these  brokers  have  a  large  amount  of  money 
of  their  own,  and  their  method  of  operating  is  to  make 
loans  from  their  capital,  sell  their  securities  in  the  east, 
loan  the  money  again,  and  thus  employ  the  amount  of  their 
capital  several  times  during  the  year  in  making  such 
loans.  They  pay  no  taxes  on  the  capital  invested  in 
the  business,  claiming  exemptions  under  the  Constitu- 
tional provision  exempting  mortgages  from  taxation. 

We  believe  that  such  concerns  ought  to  pay  some 
revenue  to   the   State,   and   we   have   therefore   prepared 


89 

a  bill  providing  for  a  graduated  license  tax  against  such 
institutions. 


INHERITANCE   TAX.      * 

There  seems  to  us  to  be  two  objections  to  our 
inheritance  tax  law  as  now  existing;  first,  that  the  law 
makes  no  distinction  in  the  amount  of  tax  collected  between 
direct  and  collateral  heirs,  and  that  the  tax  on  small 
estates  to  direct  heirs  is  too  heavy;  and,  second,  that  the 
tax  by  reason  of  its  harshness  in  that  respect  has  been 
too  often  and  too  easily  evaded  by  citizens  of  this 
State. 

The  tax  provided  for  is  unclassified  and  non-pro- 
gressive. The  widow  of  a  decedent  pays  the  same  tax 
with  the  same  exemption  that  is  paid  by  ,a  non-resident 
alien  of  no  relationship.  The  rate  is  five  per  cent  on 
all  amounts  over  ten  the  thousand  dollar  exemption.  We 
have  amended  this  law  by  making  the  tax  classified  and 
progressive,  and  reducing  the  amount  of  the  exemption 
to  five  thousand  dollars  for  direct  heirs  and  one  thous- 
and dollars  for  collateral. 

We  had  contemplated  a  much  more  complete  and 
elaborate  classification  than  the  one  presented  in  this  bill, 
with  higher  progressive  rates  graduated  according  to  the 
degree  of  relationship  and  the  amount  of  the  inheritance, 
but .  upon  the  representations  of  officials,  upon  whom  de- 
volves the  duty  of  collecting  this  tax,  that  the  classification 
and  table  of  rates  we  had  thought  of  adopting,  and  which 
is  shown  by  the  table  in  our  Preliminary  Report,  was 
rather  complicated  and  would  render  the  collection  of  the 
tax  more  difficult,  we  concluded  to  make  a  more  simple 
classification,  that  of  direct  and  collateral  heirs  only,  and 
providing  a  progressive  tax  for  direct  heirs  and  a  straight 
five  per  cent  tax  above  the  one  thousand  dollar  exemption 
for  collateral  heirs. 


90 

Under  the  classification  and  rates  we  recommend, 
we  believe  the  tax  will  be  cheerfully  paid,  and  that  there 
will  be  comparatively  few  efforts  made  to  avoid  it ;  but  as 
a  further  precaution,  and  in  order  to  forestall  any 
attempt  to  evade  the  payment  of  this  tax,  we  have  pro- 
vided in  Section  8  that  all  transfers  made  by  gift  or  by 
grant  for  a  nominal  consideration,  or  in  trust,  or  to  a 
holding  corporation  at  any  time  within  five  years  prior 
to  the  death  of  the  grantor  shall  be  conclusively  presumed 
to  have  been  transferred  in  anticipation  of  death  and 
taxed  accordingly. 

Section  10  is  designed  to  aid  the  officials  charged  with 
the  duty  of  collecting  the  inheritance  tax  in  the  perform- 
ance of  their  duties,  and  has  been  found  to  be  a  necessary 
provision  by  the  officials  engaged  in  enforcing  the  present 
law. 

In  Section  11  we  have,  in  addition  to  the  other  de- 
ductions allowed  to  be  included  in  the  term  ''debts," 
provided  that  sums  paid  to  attorneys  for  services  in  the 
settlement  of  an  estate  shall  also  be  allowed. 

This  necessary  expense  has  not  heretofore  been 
deductible,  ^nd  we  see  no  reason  why  it  is  not  as  legiti- 
mate an  expense  and  as  properly  deductible  as  any  other 
expense  connected  with  the  settlement  of  the  estate. 

It  sometimes  happens  that  an  estate  consists  largely 
of  securities  of  fluctuating  value.  It  also  sometimes 
happens  that  property  belonging  to  an  estate  is  discovered 
after  an  appraisement  has  been  made.  It  may  even  happen 
that  the  State  Treasurer  may  have  reason  to  believe 
that  a  portion  of  the  assets  of  an  estate  have  been  wilfully 
withheld  from  the  appraisement. 

It  therefore  might  be  that  between  the  time  when 
the  appraisement  was  had  and  the  time  when  the  inheri- 
tance  tax  is   payable,   the   estate  would   greatly   increase 


91 

or  decrease  in  value.  In  such  cases  it  seems  just  and 
proper  that  a  new  appraisement  be  had.  Therefore,  in 
Section  41,  we  have  provided  that  either  the  State  Treas- 
urer or  a  person  interested  in  the  estate  may  apply  for  a 
reappraisement,  and  in  the  event  that  a  difference  of  more 
than  ten  per  cent  is  shown,  the  tax  to  be  computed  on 
the  new  appraisement.  If  the  appraisement  shows  no 
material  change  in  the  value  of  the  estate,  then  the  cost 
of  the  appraisement  to  be  paid  by  the  person  applying 
therefor. 

Under  the  present  practice  there  has  seemed  to  be 
some  difficulty  in  relation  to  the  payment  of  costs,  taxable 
to  the  State,  and  we  are  informed  that  a  number  of  special 
bills  have  to  be  passed  at  each  session  of  the  Legislature 
to  pay  such  costs  long  past  due. 

We  recommend  that  a  small  appropriation  be  included 
in  the  general  appropriation  bill  from  which  such  costs 
can  be  paid,  thus  avoiding  the  necessity  of  legislative  action 
on  each  item  of  that  description. 

These  are  the  only  changes  of  any  moment  that  we 
recommend  in  the  existing  law. 


CONSTITUTIONAL  AMENDMENTS. 

We  had  hoped  to  be  able  to  recommend  a  system  that 
would  be  more  in  accordance  with  the  results  of  recent  in- 
vestigations and  modern  developments  in  this  great  sub- 
ject. The  radical  changes  which  we  expected  to  recom- 
mend, and  without  which  we  believe  no  perfect  system  of 
taxation  can  exist,  were  made  impossible  because  of  the 
restrictions  of  our  Constitution. 

The  amendments  submitted  to  the  people  for  ratifi- 
cation at  the  last  general  election  would  have  permitted  a 


92 

long  step  forward  in  scientific  revenue  legislation.  That 
such  amendments  were  not  adopted  we  believe  was  due 
to  insufficient  information  as  to  the  purpose  and  effect 
of  the  amendments  not  only  on  the  part  of  the  people 
themselves,  but  on  the  part  of  many  of  those  who  assumed 
to  lead  them  and  advise  them  how  to  vote.  Leaders  who 
strained  every  nerve  to  defeat  these  amendments  at  the  late 
election  are  now  demanding  of  this  Commission,  and  of 
the  Legislature  to  whom  this  report  is  made,  bills  provid- 
ing for  example  for  a  more  equitable  distribution  of  the 
taxes  derived  from  public  service  corporations,  or  for 
exemptions  from  taxation  of  the  property  of  the  poor 
man's  home  or  household  furniture,  not  realizing  perhaps 
that  under  our  present  Constitution  such  legislation  is  im- 
possible. • 

Until  our  State  Constitution  is  amended,  and  the  Leg- 
islature left  free  to  meet  the  many  problems  arising  under 
modern  conditions  in  relation  to  the  revenue  system  un- 
hampered by  constitutional  restrictions,  we  can  never 
have  a  system  of  taxation  that  will  be  entirely  just  to  all 
the  people  of  the  State. 

What  we  have  done  has  been  with  the  purpose  of  so 
amending  oijr  present  system  as  to  make  it  as  equitable 
as  we  could  devise  under  the  Constitution. 

The  method  of  amending  the  Constitution,  if  it  is  to 
be  amended,  must  be  left  to  the  wisdom  of  the  Legisla- 
ture. 

We  believe  the  best  result  will  be  obtained  by  sub- 
stituting for  Article  13  of  our  Constitution  the  recom- 
mendation of  the  National  Tax  Association  to  the  States 
of  Arizona  and  New  Mexico,  as  the  only  constitutional  pro- 
visions necessary  or  advisable.    It  is  as  follows: 

'*The  power  of  taxation  shall  never  he  surrendered, 
suspended  or  contracted  away.  All  taxes  shall  he  uni- 
form upon  the  same  classes  of  property  within  the  terri- 


93 

torial  limits  of  the  authority  levying  the  tax,  and  shall 
be  levied  and  collected  for  public  purposes  only." 

It  is  quite  possible  that  so  radical  a  change  in  our 
Constitution  would  not  be  ratified  by  the  people  of  the 
State  at  the  present  time,  and  it  may  be  that  it  would  be 
useless  to  present  such  an  amendment  for  ratification. 

The  adoption  of  the  four  amendments  defeated  at  the 
last  general  election  together  with  one  more  permitting 
the  Legislature  to  make  an  equitable  distribution  of  the 
taxes  derived  from  Public  Service  Corporations  would  per- 
mit the  taking  of  a  long  stride  forward  in  tax  legislation 
in  this  State. 

It  has  also  been  suggested  that  a  Constitutional  Con- 
vention ought  to  be  called  to  re-write  our  Constitution, 
thus  placing  in  the  hands  of  representatives  of  the  people 
specially  elected  for  that  purpose  the  burden  and  duty  of 
providing  a  constitution  which  while  maintaining  suffic- 
ient safe-guards  against  emotional  or  unwise  legislation 
would  still  give  to  the  Legislature  sufficient  latitude  to 
enable  it  to  provide  for  a  just,  equitable  and  modern  sys- 
tem of  taxation. 


CONCLUSION. 


As  we  have  already  indicated,  the  failure  of  the  pro- 
posed Constitutional  amendments  has  made  impossible  the 
principal  and  vital  reforms  in  our  revenue  laws  that  we 
had  contemplated. 

We  have  however  been  able  to  recommend  quite  a 
large  number  of  changes  which,  we  believe,  will,  if  adopted, 
be  found  to  provide  a  system  greatly  in  advance  of  what  we 
now  have. 


94 

We  have  attempted  to  secure  the  placing  on  the  as- 
sessment rolls  of  a  large  amount  of  property  not  hereto- 
fore taxed;  to  provide  for  the  more  equitable  assessment 
of  all  property;  and  to  provide  more  simple,  sure  and  ef- 
fective methods  of  administration. 

The  results  of  our  labors  are  presented  herewith  for 
your  consideration. 

Respectfully  submitted, 

HARDEN  BENNION  , 
C.   S.  PATTERSON, 
FRANCIS  W.   KIRKHAM, 

Commissioners. 


95 

MINORITY  REPORT  OF  HARDEN  BENNION. 


The  undersigned,  a  minority  of  the  above  Commission, 
while  regretting  very  much  the  necessity  for  so  doing, 
feels  compelled  to  present  for  your  consideration  a  report 
covering  one  phase  of  the  subject  of  taxation  in  which  he 
differs  in  opinion  from  the  majority  members. 

There  seems  to  be  a  public  sentiment  to  the  effect 
that  taxes  are  now  as  high  as  it  is  possible  to  make 
them  under  the  present  law  and  that  a  change  of  the 
system  to  assessment  at  full  value  would  place  the  people 
at  the  mercy  of  a  set  of  grasping  and  irresponsible  offi- 
cials, who  could  and  would  plunder  the  people  at  will. 
The  very  reverse  is  the  case. 

It  is  now  absolutely  within  the  power  of  the  taxing 
authorities  to  double  or  treble  all  direct  taxes,  not  by 
raising  the  levies,  but  by  raising  values  to  "full  cash 
value" — now  required  by  both  the  Constitution  and  laivs 
of  the  State.  Assessment  at  full  value,  coupled  with  a 
revision  downward  of  the  maximum  levies,  permitted  by 
law  to  be  made,  to  a  point  where  such  maximum  levies 
would  produce,  when  applied  to  a  full  valuation  assess- 
ment, no  more  revenue  than  is  now  collected,  would  not 
only  not  increase  taxes  in  the  aggregate,  but  would  actually 
take  it  out  of  the  poiver  of  a  State  or  county  administra- 
tion to  levy  and  collect  higher  taxes  than  are  now  being 
collected.  In  fact  such  a  system  could,  if  the  people  see 
fit,  so  limit  the  levies  that  all  taxes  would  be  even  lower 
than  they  now  are.  » 

However,  public  sentiment  has  in  the  past  seemed  to 
demand  much  of  the  public  service  along  all  lines  of 
activity.  The  public  schools,  high  schools,  the  higher 
educational  institutions,  public  health  and  sanitation,  the 
care  of  the  unfortunate  and  criminal  elements  of  society, 
good  roads  and  bridges,  public  buildings — all  these,   and 


96 

many  other  very  proper  functions  of  government,  have 
demanded  large  expenditure  of  public  funds.  Such  funds 
can  be  secured  only  by  taxation  in  some  form,  and  such 
expenditures  are  for  the  benefit  of  the  general  public, 
and  secure  for  the  v^hole  people  of  the  State  or  its  several 
political  subdivisions,  collectively,  that  which  they  require 
to  be  done,  but  which  they  cannot  possibly  accomplish 
individually. 

But  if  the  people  feel  that  the  improvement  of  the 
public  service  has  gone  far  enough,  or  is  progressing 
faster  than  their  ability  to  pay  for  it,  then  such  senti- 
ment expressed  at  the  polls  and  through  their  duly  elected 
representatives  in  the  Legislature  can  check  such  improve- 
ment and  by  further  limitation  of  tax  levies  applied  to  a 
full  valuation  assessment,  reduce  taxes  to  any  desired 
point. 

Under  such  a  system  as  is  proposed  above,  truth  and 
fact,  not  fiction,  would  be  the  groundwork  of  our  assess- 
ments. We  have  no  patience  with  the  plan,  adopted  in 
some  states  of  making  levies  upon  a  percentage  basis,  say 
from  twenty  to  sixty  per  cent  of  the  full  value,  because 
such  assessment  presupposes  the  fixing  of  actual  value; 
but  even  such  a  system  is  in  advance  of  our  haphazard, 
go-as-you-please  way  of  doing  things,  and  if  there  is 
any  good  reason  why  property  should  not  be  assessed  at 
full  value,  we  advocate  the  amendment  of  our  Constitu- 
tion and  laws  so  as  to  allow  of  assessment  on  some 
definite,  specified  percentage  basis.  But  the  scaling  down 
of  these  maximum  levies  by  law,  and  the  actual  assessment 
of  property  at  full  value, i  is  not  a  matter  requiring  con- 
stitutional amendment. 

This  Commission  is  therefore  unanimous  in  its  belief 
that  all  property  should  be  assessed  at  full  value,  but  upon 
rates  fixed  by  law  at  a  point  so  low  that  taxes  could 
not,  under  such  full  value  assessment,  be  any  higher  than 
they  now  are;  but  the  majority  members  of  the  Commis- 


97 

sion,  believing  that  the  actual  value  of  all  the  property 
of  the  State  is  at  least  three  times  that  of  the  present 
assessed  value  and  that  a  consequent  reduction  of  tax 
rates  to  one-third  of  those  now  levied  must  necessarily 
follow  such  full  value  assessment,  maintain  that  certain 
classes  of  property  now  very  properly,  in  our  opinion, 
assessed  much  nearer  to  actual  value  as  defined  by  law 
than  the  general  property  of  the  State,  would  under  a 
full  value  assessment  of  all  property  escape  their  just 
share  of  taxes,  and  necessarily  throw  the  burden  from 
which  they  are  thus  relieved  upon  the  balance  of  the  prop- 
erty of  the  State. 

The  principal  beneficiaries  under  such  a  plan,  would 
be  mining  companies,  which  pay  taxes  on  their  net  pro- 
ceeds, now  taxed  at  one  hundred  per  cent  of  such  net 
proceeds,  and  consequently  paying  three  times  as  much 
taxes  on  their  net  proceeds  as  they  would  under  the  pro- 
posed reduced  levies,  and  banking  property,  now  generally 
assessed  under  the  prevailing  practice,  at  seventy-five 
per  cent  of  its  capital,  surplus  and  undivided  profits,  and 
therefore  not  susceptible  of  increased  valuation  in  the 
same  ratio  as  the  general  property  of  the  State.  For  this 
reason,  the  majority  members  of  the  Commission  believe 
that  until  such  time  as  the  State  Constitution  is  so 
amended  as  to  permit  the  classification,  of  property  for 
taxation  and  the  application  of  varying  rates  to  the  differ- 
ent classes,  or  until  some  other  plan  shall  be  devised 
which  will  prevent  the  reduction  of  taxes  upon  the  most 
profitable  and  wealth  producing  investments  in  the  State, 
and  that  at  the  expense  of  other  classes  of  property  not 
so  profitable,  it  is  inadvisable  to  apply  the  full  valuation 
method  of  taxation. 

I  shall  not  burden  this  report  with  a  discussion  of 
the  merits  of  the  taxation  of  mines  on  their  net  pro- 
ceeds, and  banks  upon  their  capital  surplus  and  undivided 
profits,  and  both  at  the  same  ratio  as  are  levied  against 
all  other  property  assessed  at  full  value ;  but  rather  will 

7-TR 


98 

agree,  with  my  conferees,  that  the  adoption  in  this  State 
at  the  present  time  of  a  system  of  assessment  at  full 
value  preceded  by  a  corresponding  reduction  of  levies, 
would  reduce  very  materially  the  assessment  of  these  two 
classes  of  property.  For  the  year  1912  the  assessment  of 
net  proceeds  of  mines  in  this  State  amounted  to  $7,450,000 
and  that  of  banks  to  $7,500,000,  estimated,  there  being  no 
separate  classification  of  banking  property  on  the  assess- 
ment rolls. 

Therefore,  assuming  that  full  valuation  of  all  the 
property  of  the  State  would  raise  its  assessed  value  to 
three  times  the  amount  at  which  it  is  now  assessed,  and 
assuming  that  it  is  desirable  to  raise  the  same  amount  of 
revenue  that  is  now  raised,  the  State  would  lose  to  its 
general  fund,  State  school  and  State  high  school  funds 
$37,247.00  per  year  from  the  assessment  of  the  net  pro- 
ceeds of  mines,  and  of  course  the  several  counties  and 
other  lesser  taxing  districts  would  also  suffer  according 
to  their  varying  rates. 

Assuming  also  that  the  banks  of  the  State  are  now 
assessed  at  seventy-five  per  cent  of  their  value,  as  stated 
above,  their  assessment  at  full  value  and  at  one-third  of 
the  present  rates  of  levy  would  mean  that  this  class  of 
property  would  pay  forty-one  and  two-thirds  per  cent  of 
the  amount  it  now  pays,  and  the  State  funds  would  lose 
upon  a  present  valuation,  as  estimated  above,  the  sum  of 
$32,812.50,  making  a  total  loss  to  State  funds  from  banks 
and  mines  of  the  sum  of  $70,059.50,  which  loss,  of  course, 
would  fall  upon  other  property,  as  would  also  the  addi- 
tional loss  to  county  and  school  funds. 

Notwithstanding  such  loss,  the  undersigned,  a  min- 
ority of  the  commission,  desires  to  recommend  seriously 
and  earnestly  the  adoption  by  the  State  of  the  full  valua- 
tion and  low  rate  plan,  here  and  now,  and  without  waiting 
for  amendment  of  the  Constitution,  and  to  that  end  has 
prepared    for    introduction    bills    designed    to    reduce    all 


99 

general  and  special  tax  levies,  excepting  only  such  as  must 
be  authorized  by  a  vote  of  the  people,  to  about  one-third 
of  the  maximum  rates  now  allowed  by  law.  In  support 
of  this  proposition,  I  desire  to  refer  to,  and  make  a  part 
of  this  report,  that  part  of  the  Preliminary  Report  of  this 
commission  beginning  on  page  14,  entitled  ''Assessment 
at  Full  Value;"  also  to  call  attention  to  the  fact  that  our 
Constitution  and  laws  are  now  and  have  always  been 
replete  with  demands  for  assessment  at  full  value  and 
provide  dire  penalties  upon  both  taxpayers  and  officials 
who  disregard  such  demands.  The  wanton  disregard  of 
these  plain  provisions  of  the  law  has  reached  such  an  ex- 
tent, and  has  been  so  long  continued  that  even  our  best 
citizens,  men  whose  word  even,  to  say  nothing  of  their 
oath,  is  considered  synonymous  with  probity  and  integrity 
in  the  ordinary  business  of  life,  have  come  to  look  upon 
the  falsification  of  tax  returns  as  a  matter  of  course,  their 
sworn  statement  as  affecting  taxation  of  no  more  conse- 
quence than  empty  air.  Of  course,  there  are  exceptions 
to  this  rule,  but  such  exceptions  must  necessarily  and  un- 
avoidably bring  upon  themselves  injustice  so  rank  that  I 
feel  that  the  State  of  Utah  cannot  longer  afford  to  tolerate 
it,  or  be  a  party  to  it. 

Another  reason  for  assessment  at  full  value  and  at 
low  rates  is  found  in  the  fact  that  under  such  a  system 
and  with  rates  reduced  to  a  total  of  from  ten  to  fifteen 
mills,  the  assessment  of  money  and  credits  could  be  much 
more  readily  enforced,  and  this  class  of  property  be  made 
to  bear  a  part  of  its  share  of  the  public  burden.  The 
assessment  of  this  class  of  property  under  existing  con- 
ditions is  a  farce,  not  one  thousandth  part  of  that  existing 
in  the  State  being  taxed  (excepting  only  that  part  repre- 
sented by  the  capital  stock  of  banks)  ;  and  such  non- 
assessment  is  justified  and  accounted  for  first  because  of 
its  non-discoverability  by  the  assessing  official,  second 
because  of  the  well  founded  belief  that  if  found  and 
assessed  at  the  prevailing  rates  it  would  seek  deposit  and 


100 

investment  outside  the ,  State,  and  third,  because  of  the 
fact  that  if  assessed  at  all  it  must  be  assessed  at  full  value 
and  at  rates  that  v^ould  take  for  taxes  from  fifty  to  one 
hundred  per  cent  of  its  entire  income,  speaking  now  of 
money  loaned,  and  would  draw  heavily  on  the  principal  of 
money  on  deposit  or  of  non-interest  bearing  solvent  credits. 

Tax  experts  without  exception  maintain  that  the  con- 
stantly increasing  rates  of  taxation  are  responsible  for 
the  pernicious  practice  of  undervaluation  and  of  the  con- 
cealment of  intangible  personalty  from  the  eyes  of  the 
assessor;  hence  the  full  valuation  of  the  general  property 
of  the  State,  together  with  a  reduction  of  levies  to  the 
lowest  possible  point  consistent  with  the  administration  of 
good  government,  will  tend  to  bring  us  back  to  the  time 
when  men  could  and  did  make  full  and  honest  return  of 
their  property  for  taxation. 

And  again,  notwithstanding  the  fact  that  the  taxes 
on  mines  and  banks  may  be  reduced  at  the  expense  of  other 
classes  of  property,  the  law  ought  to  be  enforced,  and  ought 
to  govern  in  the  premises  rather  than  that  it  should  be  re- 
quired of  assessors  and  other  officials  to  assess,  in  plain 
and  unmistakable  violation  of  law,  one  class  of  property 
at  twenty  to  forty  per  cent  of  its  value  and  another  class 
at  seventy-five  to  one  hundred  per  cent.  If  it  is  good  law 
that  all  classes  of  property  should  be  assessed  at  the  same 
rates  then  banks  and  mines  should  have  the  benefit  of  such 
rates,  and  if  it  is  not  good  law  it  should  still  be  enforced 
because  the  best  v^ay  to  bring  about  the  repeal  of  a  bad 
law  is  to  eliforce  it. 

It  is  without  doubt  true  that  a  change  from  the  pres- 
ent system  to  that  of  full  valuation  will  bring  about  a  great 
upsetting  of  taxation  conditions  and  valuations  and  will 
cause  objection  and  protest  from  those  whose  taxes  will  be 
greater  than  they  now  are.  Much  greater  effort,  activity, 
and  responsibility  will  be  required  of  taxing  officials.  But, 
in  my  opinion,  such  upsetting  and  activity,  effort  and  re- 


101 

sponsibility  are  all  demanded  by  the  present  situation  and 
cannot  come  too  soon,  hence  I  say  again,  let  the  change 
come  here  and  now  and  let  those  whose  withers  are  pinched 
wince,  and  those  entitled  to  relief  enjoy  it. 

Respectfully  submitted, 

HARDEN   BENNION, 


102 


MINORITY  REPORT  OF  C  S  PATTERSON. 


While  I  believe  that  the  recommendations  of  this  com- 
mission changing  the  commencement  of  the  term  of  the 
county  assessor  from  the  first  Monday  in  January  to  the 
first  Monday  of  July,  and  the  recommendation  for  a  four 
years'  term,  and  the  further  recommendation  increasing 
the  salary,  are ,  icn^  stqps  in  advance,  I  also  believe  that 
the  proposed  reforms  do  .not  go  far  enough,  and  that  while 
they,  would  undoubtedly  result  in  securing  a  better  and 
more  experienced  class  of  assessors,  and  that  consequently 
there  would  result  a  more  equitable  assessment  of  the 
property  of  the  State,  there  would  still  be  the  difficulty 
of  varying  standards  of  valuation  in  the  different  counties 
which  the  present  machinery  would  be  unable  to  correct, 
and  that  great  inequalities  in  taxation  would  continue  to 
exist. 

■  Impressed  with  this  condition,  I  have  prepared  and 
submit  herewith  a  bill  abolishing  the  office  of  county 
assessor  as  an  elective  office,  and  placing  the  assessment 
of  all  property  within  the  State  in  the  hands  of  the  State 
Board  of  Equalization. 

The  bill  provides  that  county  assessors  be  appointed 
by  the  State  Board  of  Equalization  from  a  list  of  three 
candidates  proposed  by  the  Board  of  County  Commis- 
sioners of  the  county  in  which  the  appointment  is  to  be 
made,  such  candidates  also  to  be  endorsed  by  the  district 
judge  of  the  district  within  which  the  county  is  situated; 
the  salary  of  the  assessor  to  be  fixed  by  the  State  Board 
of  Examiners  and  paid  by  the  State.  Assistants  to  be 
appointed  by  the  assessor  and  confirmed  by  the  State 
Board  of  Equalization. 

I  think  it  will  be  conceded  without  argument  that 
where  all  the  assessors  of  the  State  are  under  the  direction 
and  control  of  the  central  body  with  authority  to  direct 


103 

and  control  the  action  of  the  assessors  to  fix  within 
reasonable  limits  the  valuation  at  which  each  class  of 
property  shall  be  assessed,  there  would  result  an  assess- 
ment of  the  property  of  the  State  that  would  practically 
require  no  equalization  whatever. 

In  our  recommendations  we  have  added  new  duties 
and  required  additional  services  from  the  State  Board 
of  Equalization.  The  affidavits  as  to  the  true  consider- 
ation of  deeds  are  filed  and  recorded  with  that  board; 
reports  from  the  State  Land  Board  are  made  to  it,  and 
it  is  required  to  more  completely  keep  in  touch  with 
revenue  conditions  and  revenue  officials  throughout  the 
State.  All  these  requirements  make  the  State  Board  of 
Equalization  more  than  ever  the  one  competent  board  to 
have  charge  of  the  assessment  of  all  property  for  the 
purposes  of  taxation. 

I  do  not  believe  that  it  is  possible  to  secure  a  uniform 
valuation  of  the  property  of  the  State  until  the  work  of 
securing  that  valuation  is  in  the  hands  of  some  competent 
central  authority. 

I  do  not  understand  that  my  associates  on  this  com- 
mission object  to  the  provisions  of  this  bill  or  that  they 
do  not  agree  with  me  that  its  enactment  would  result  in  a 
much  more  equitable  assessment  of  the  property  of  the 
State. 

If  I  understand  their  views  correctly,  they  refrain 
from  joining  with  me  in  this  recommendation  on  the 
ground  that  the  people  of  the  State  would  probably  not 
consent  that  one  -  of  the  important  elective  offices  of  the 
county  be  hereafter  filled  by  appointment.  I  think  what 
we  have  heretofore  said  in  relation  to  the  election  of  the 
members  of  the  State  Board  of  Equalization  is  equally 
applicable  in  this  connection. 

If  it  be  conceded,  as  I  think  it  must  be  by  everyone 
who  has  given  the  subject  consideration,  that  the  method 
I  suggest,  or  some  similar  method,  would  result  in  a  more 


104 

fair  assessment,  then  I  have  sufficient  confidence  in  the 
good  sense  of  the  people  of  this  State  to  believe  that  they 
v^ill  welcome  any  innovation  which  promises  such  desirable 
results,  even  though  it  does  deprive  them  of  whatever 
pleasure  there  may  be  in  the  contention  as  to  which  of  two 
men,  both  of  whom  are  unknown  to  the  most  of  them, 
shall  be  elected  county  assessor. 

I  believe  that  county  assessors  should  be  citizens  of 
the  county  the  property  of  which  they  are  required  to 
assess.  I  believe  that  they  should  be  well  qualified  for 
the  work,  and  in  order  that  men  having  these  qualifica- 
tions may  be  selected,  the  provisions  in  relation  to  the 
appointment  of  the  assessor  have  been  included  in  the  bill. 

I  cannot  too  strongly  urge  upon  this  Legislature  the 
passage  of  this  bill.  I  believe  it  to  contain  one  of  the 
most  important  provisions  among  all  the  changes  we  have 
recommended.  More  than  that,  I  am  of  the  opinion  that 
the  benefits  resulting  from  the  passage  of  this  bill  will  be 
greater  than  those  of  any  single  enactment  which  we  have 
recommended.  I  believe  the  people  of  the  State  are  ready 
to  accept,  and  that  they  are  demanding  reforms  in  the 
assessment  of  property,  and  I  know  of  no  single  reform 
in  methods  of  assessment  that  promises  so  much  in  the 
way  of  fair  and  equitable  valuations  as  do  the  provisions 
of  this  bill. 

Should  this  bill  be  enacted.  Section  541,  Compiled 
Laws,  should  be  amended  by  striking  out  the  word 
''Assessor"  from  the  list  of  county  officials  herein 
provided,  and  Section  2057,  Compiled  Laws,  as  amended 
by  Chapter  79,  Laws  of  1911,  should  be  amended  by 
striking  therefrom  all  reference  to  the  maximum  salaries 
of   County   Assessors. 

Respectfully  submitted, 

C.  S.  PATTERSON. 


105 

AN  ACT  PROVIDING  A  GENERAL  REVENUE 
MEASURE  FOR  THE  STATE,  AND  REPEALING 
TITLE  80,  COMPILED  LAWS  OF  1907,  AS 
AMENDED  BY  CHAPTER  94,  LAWS  OF  1909; 
CHAPTER  63,  LAWS  OF  1909;  CHAPTER  117, 
LAWS  OF  1909;  CHAPTER  90,  LAWS  OF  1909; 
CHAPTER  85,  LAWS  OF  1911;  CHAPTER  83, 
LAT^^f  OF  1911;  CHAPTER  116,  LATf^  Oi^  1911; 
CHAPTER  114,  LAT75  OF  1911;  AiVZ>  REPEAL- 
ING CHAPTER  66,  LAT1^5  OF  1911. 

Be  It  Enacted  by  the  Legislature  of  the  State  of  Utah: 

DEFINITIONS. 

1.  Whenever  terms  mentioned  in  this  section  are 
employed  in  this  Act,  they  are  employed  in  the  sense 
hereinafter  affixed  to  them,  to  wit: 

1.  The  term  ''Property"  includes  moneys,  credits, 
bonds,  stocks,  franchises,  and  all  other  matters  and 
things  real,  personal  and  mixed  capable  of  private  own- 
ership; but  this  shall  not  be  so  construed  as  to  authorize 
the  taxation  of  the  stocks  of  any  company  or  corporation 
when  the  property  of  such  company  or  corporation,  repre- 
sented by  such  stocks,  has  been  taxed; 

2.  The  term  ''real  estate"  includes: 

First.  The  possession  of,  claim  to,  ownership  of, 
or  right  to,  the  possession  of  land; 

Second.  All  mines,  minerals,  and  quarries  in  and 
under  the  land  subject  to  the  provisions  of  Section  53, 
all  timber  belonging  to  individuals  or  corporations,  grow- 
ing or  being  on  the  lands  of  the  State  or  the  United  States, 
and   all   rights   and   privileges   appertaining   thereto; 

Third.     Improvements. 

3.  The  term  "improvements"  includes  all  build- 
ings, structures,  fixtures,  fences  and  improvements  erected 


106 

upon  or  affixed  to  the  land,  whether  the  title  has  been 
acquired  to  said  lands  or  not; 

4.  The  term  "personal  property"  includes  everything 
which  is  the  subject  of  ownership  not  included  within 
the  meaning  of  the  terms  ''real  estate"  and  ''improve- 
ments" ; 

5.  The  terms  "value"  and  "full  cash  value"  mean 
the  amount  at  which  the  property  would  be  taken  in 
payment  of  a  just  debt  due  from  a  solvent  debtor; 

6.  The  term  "credit"  means  those  solvent  debts, 
secured  or  unsecured,  owing  to  a  person; 

7.  The  term  "debts"  means  those  secured  or  un- 
secured liabilities  owing  by  a  person; 

8.  The  term  "person"  as  used  in  this  Act  shall 
be  construed  to  include  partnerships,  corporations,  and 
associations  of  persons. 


ASSESSMENT. 


General  Provisions: 


2.  AIL  property  in  this  State,  not  exempt  under 
the  laws  of  the  United  States,  or  under  the  Constitution 
of  this  State,  shall  be  taxed  in  proportion  to  its  value, 
as  hereinafter  provided. 

3.  All  taxable  property  must  be  assessed  in  the 
county,  city,  town  or  district  in  which  it  is  situated. 
Land  must  be  assessed  in  parcels  or  subdivisions  not 
exceeding  six  hundred  forty  acres  each,  and  tracts  of 
land  containing  more  than  six  hundred  forty  acres, 
which  have  been  sectionized  by  the  United  States  Govern- 
ment, must  be  assessed  by  sections  or  fractions-  of  sec- 
tions. 

4.  All  property  and  franchises  owned  by  railroads, 
street    railroads,    car,    telegraph    and    telephone,    electric 


107 

light,  pipe  line,  power,  canal,  irrigating  and  express 
companies,  operated  in  more  than  one  county  in  this 
State,  and  all  the  machinery  used  in  mining,  and  prop- 
erty and  surface  improvements  upon  or  appurtenant 
to  mines  and  mining  claims  which  have  a  value  separate 
and  independent  of  all  such  mines  or  mining  claims, 
and  the  net  annual  proceeds  of  all  such  mines  and  mining 
claims  in  this  State  must  be  assessed  by  the  State  Board 
of  Equalization  as  hereinafter  provided. 

5.  The  property  of  the  United  States,  of  the  State, 
counties,  cities,  towns,  school  districts,  and  public  libraries, 
and  lots  with  the  buildings  thereon  used  exclusively  for 
either  religious  worship  or  charitable  purposes,  and 
places  of  burial  not  held  or  used  for  private  or  corporate 
benefit,  shall  be  exempt  from  taxation.  Ditches,  canals, 
flumes,  and  pumping  plants,  owned  and  used  by  indi- 
viduals or  corporations  for  irrigating  lands  owned  by 
such  individuals  or  corporations,  or  the  individual  mem- 
bers thereof,  shall  not  be  separately  taxed  so  long  as 
they  shall  be  owned  and  used  exclusively  for  such 
purposes. 

6.  The  State  Board  of  Equalization  must  pre- 
pare and  furnish  to  each  county  an  assessment  roll  with 
appropriate  headings  in  which  must  be  listed  by  the  county 
assessor  of  each  county  all  property  within  the  county, 
which  must  be  specified  in  separate  columns  under  the 
appropriate  heading,  with  an  additional  column  in  which 
must  be  shown  the  cash  value  of  each  item  of  assess- 
ment, so.  classified  and  arranged  by  school  district,  city, 
town  or  other  taxing  district,  with  appropriate  columns 
for  the  taxes  and  separately  setting  out  any  bounty  or 
other  special  taxes,  that  such  assessment  roll  will  readily 
show  all  property,  both  personal  and  real  to  be  within 
or  without  the  corporate  limits  of  any  city  or  town  or 
other  taxing  district  for  which  the  County  Treasurer  is 
by  law  required  to  collect  taxes  and  showing: 

1.  The  name  of  the  person  to  whom  the  property 
is  assessed  together  with  his  post  office  address,  giving 
the  street  number  or  the  number  of  lot  and  block,  so  far 
as  possible  to  obtain  same  from  taxpayers'  statements, 
county  records  or  otherwise; 


108  ,i 

2.  City  and  town  lots,  naming  the  city  or  town, 
plat  or  subdivision  and  number  of  the  lot  or  block 
according  to  the  system  of  numbering  in  such  city  or 
town  with  a  description  by  tax  number; 

3.  The  cash  value  of  improvements  on  city  and 
town   lots; 

4.  Land  by  township,  range,  section  or  fractional 
section  or  lot  with  a  description  by  tax  number,  giving 
an  estimate  of  the  number  of  acres,  not  exceeding  in 
any  one  tract  six  hundred  forty  acres  and  classified  as: 

Real  estate  acreage  assessed  as  farm  lands, 

Real  estate  acreage  assessed  as  fruit  lands. 

Real  estate  acreage  assessed  as  grazing  lands, 

Real  estate  acreage  assessed  otherwise  than  as  farm, 
fruit  or  grazing  lands; 

5.  The  cash  value  of  improvements  on  real  estate 
assessed  as  acreage; 

6.  The  cash  value  of  improvements  on  real  estate 
assessed  to  persons  other  than  the  owners  of  the  real 
estate ; 

7.  Horses   or   mules   assessed   on   range; 

8.  Horses   or   mules   otherwise   assessed; 

9.  Cattle  assessed  on  range; 

10.  Cattle  otherwise  assessed; 

11.  Sheep  or  goats  assessed  on  range; 

12.  Sheep  or  goats  otherwise  assessed; 

13.  Swine; 

14.  Bees ; 

15.  Merchandise  and  trade  fixtures; 

16.  Machinery,  implements,  tools  and  vehicles; 

17.  Automobiles  and  motorcycles; 

18.  Money  and  solvent  credits; 


109 

19.  Banks  and  loan  and  trust  companies; 

20.  Furniture  and  household  effects; 

21.  Mines  and  mining  claims  by  name,  mining  dis- 
trict, number  of  acres  and  tax  number. 

22.  Improvements  and  machinery  on  or  belonging 
to  mining  property; 

23.  Interest  in  state  lands; 

24.  Personal  property  not  otherwise  enumerated. 

25.  The  total  value  of  all  property; 

Provided,  that  mines  and  mining  claims  showing  the 
price  paid  the  government  therefor  instead  of  the  cash 
value  and  the  machinery  and  improvements  thereon,  and 
all  other  property  assessed  by  the  State  Board  of  Equali- 
zation, and  all  interest  in  state  lands  showing  the  amount 
paid  thereon,  shall  be  entered  in  said  assessment  roll  as 
a  part  of  the  assessment  of  the  taxing  district  to  which 
they  properly  belong,  but  at  the  end  thereof  and  separately 
from  all  other  classes  of  property. 

26.  Such  other  things  as  the  State  Board  of  Equali- 
zation may  require; 

Provided,  that  the  State  Board  of  Equalization  is 
empowered  wherever  it  may  deem  it  necessary  to  furnish 
the  assessment  roll  required  by  this  section  in  two  books, 
viz:  one  book  for  the  listing  of  all  xeal  estate,  improve- 
ments, mines  and  mining  claims;  and  one  book  for  the 
listing  of  all  personal  property. 

7.  The  State  Board  of  Equalization  shall  furnish 
each  county  assessor,  annually  by  February  1st,  a  list 
taken  from  the  United  States  Land  offices  in  this  State 
of  all  patents  and  the  number  of  acres  in  each,  and  all 
lands  for  which  receivers'  final  receipts  have  been  issued 
without  patents  issued  during  the  previous  year  covering 
land  or  mining  claims  in  his  county.  Copies  of  all  such 
lists  shall  be  retained  or  filed  in  the  office  of  the  State 
Board  of  Equalization. 


110 

8.  The  county  assessor,  upon  receipt  of  the  list 
of  patents  and  receivers'  receipts,  provided  for  in  section 
7,  shall  enter  the  same  on  the  assessment  roll  for  the 
current  year  and  immediately  thereafter  deliver  it  to  the 
county  recorder,  whose  duty  it  shall  be  to  transcribe  same 
to  the  present  ownership  maps  of  the  county. 

9.  The  Board  of  County  Commissioners  must,  on  or 
before  the  first  Monday  after  the  first  Tuesday  of 
January  of  each  year,,  provide,  pursuant  to  the  provisions 
of  section  632x1  of  the  compiled  laws  of  Utah,  maps  cor- 
rected and  revised  to  the  first  day  of  January  at  twelve 
o'clock  M.  next  preceding,  for  the  use  of  the  assessor, 
showing  the  private  lands  owned  or  claimed  in  the 
county,  and  if  surveyed  under  the  authority  of  the  United 
States,  the  divisions  and  subdivisions  of  the  surveys. 
Such  maps  shall  be  known  and  designated  as  ''Present 
Ownership  Maps".  The  cost  of  making  such  maps,  where 
they  have  not  already  been  made,  or  of  revising  the 
same,  shall  be  paid  one-half  by  the  State  and  one-half 
by  the  county. 

10.  It  shall  be  the  duty  of  the  county  recorder 
in  the  preparation  of  the  present  ownership  maps  to 
give  each  subdivision  of  each  city  lot  and  section  of 
land  a  specific  number,  which  shall  not  be  changed,  and 
in  the  event  of  the  subdivision  of  any  plot  represented  by 
a  single  number,  the  portion  of  such  plot  retained  by  the 
original  owner,  shall  retain  the  original  number,  and 
the  portion  conveyed  shall  receive  a  new  number,  which 
shall  not  be  changed  except  in  conformity  with  the  pro- 
visions of  section  twelve  of  this  Act. 

11.  The  present  ownership  maps  shall  show  dis- 
tinctly the  number,  which  is  hereby  designated  the  tax 
number  of  each  subdivision  and,  where  the  scale  of  the 
map  will  conveniently  allow,  the  name  of  the  owner,  and 
in  any  event,  there  shall  accompany  such  map  an  index 
containing  the  numbers  of  the  subdivisions  in  numerical 
order,  and  opposite  each  number,  the  name  of  the  owner. 

12.  Whenever  two  or  more  contiguous  plots  in  the 
same  lot  or  section,  each  of  which  is  represented  on  the 


Ill 

present  ownership  maps  by  a  tax  number,  shall  become 
united  in  a  common  ownership,  the  present  ownership 
map  shall  be  amended  to  show  that  fact,  and  all  tax 
numbers  relating  to  the  tracts  so  united  shall  be  aband- 
oned, except  the  lowest  numerically,  which  shall  be  the 
new  tax  number  for  the  entire  tract. 

13.  It  shall  be  the  duty  of  the  county  recorder,  on 
recording  any  deed  or  mortgage  or  other  instrument 
affecting  the  title  to  real  estate,  to  write,  print  or  stamp 
thereon  the  words  "tax  number"  followed  by  the  number 
of  the  tract  or  tracts  represented  in  such  conveyance, 
and  his  certificate  of  the  recording  shall  state  that  this 
provision  has  been  complied  with,  and  contain  a  statement 
of  the  numbers  so  endorsed  on  such  instrument.  The 
record  of  the  instrument  so  endorsed  and  the  abstract 
record  referring  thereto  shall  show  the  tax  number 
endorsed  on  the  original  instrument  as  hereinbefore  pro- 
vided. 

14.  It  shall  be  the  duty  of  the  county  recorder,  at 
any  time  when  requested  to  do  so,  to  endorse  on  any 
deed  or  other  instrument  affecting  the  title  to  real  estate, 
recorded  prior  to  the  taking  effect  of  this  act,  its  appro- 
priate tax  number  in  the  same  manner  that  such  numbers 
are  endorsed  on  instruments  presented  for  record,  and 
shall  further  enter  on  his  record  of  such  instrument  and 
his  abstract  record,  the  tax  number  so  endorsed.  No 
charge  shall  be  made  by  the  county  recorder  for  comply- 
ing with  the  provisions  of  this  section. 

15.  The  assessor  must,  before  the  second  Monday 
in  April  of  each  year,  ascertain  the  names  of  all  taxable 
inhabitants  and  all  property  in  the  county  subject  to 
taxation,  except  such  as  is  required  to  be  assessed  by 
the  State  Board  of  Equalization,  and  except  as  otherwise 
provided  by  law,  and  must  assess  such  property  to  the 
person  by  whom  it  was  owned  or  claimed  or  in  whose 
possession  or  control  it  was  at  twelve  o'clock  noon  the 
first  day  of  January  next  preceding,  at  its  value  on 
that  date.  Credits  must  be  assessed  as  provided  in 
section  18  and  subdivision  6  of  section  17.     No  mistake 


112 

in  the   name  of  the  owners   or   supposed   owners   of   the 
property  renders  the  assessment  thereof  invalid. 

In  order  that  the  assessors  shall  have  their  offices 
fully  acquainted  with  all  the  property  in  the  respective 
counties,  they  shall  be  required  to  visit  each  separate  dis- 
trict or  precinct,  either  in  person  or  by  deputy,  annually, 
and  in  person  or  by  deputy  annually  inspect  the  property 
they  are  required  to  assess.  The  intent  of  the  last  two 
provisions  is  to  require  assessors  to  acquire  as  full 
knowledge  as  possible  of  the  property  that  should  be 
entered  upon  the  assessment  roll  in  their  respective 
counties,  so  that  all  property  shall  be  assessed  and  bear 
its  share  of  the  burden  of  taxation. 

16.  It  shall  be  the  duty  of  the  assessor,  before  the 
first  Monday  in  November  of  each  year,  to  carefully 
examine  all  machinery  used  in  mining,  and  all  property 
and  surface  improvements  upon  or  appurtenant  to  mines 
and  mining  claims  which  have  a  value  separate  and  inde- 
pendent of  all  such  mines  and  mining  claims,  and  all 
property  belonging  to  or  used  in  connection  with  such 
mines  or  mining  claims,  with  the  same  care,  attention 
and  detail  that  would  be  proper  to  be  used  if  such  ex- 
amination were  made  for  the  purpose  of  assessing  such 
property  for  the  purpose  of  taxation,  and  shall,  before 
the  first  d,ay  of  January,  make  a  report  to  the  State 
Board  of  Equalization  of  the  results  of  such  examination 
in  such  form  as  the  State  Board  of  Equalization  shall 
require,  which  report  shall  contain  a  statement  of  the 
assessor's  estimate  of  the  actual  cash  value  of  each  item  of 
property  listed  by  him. 

17.  The  State  Board  of  Equalization  must  furnish 
the  assessor  of  each  county  with  blank  forms  of  taxpayers 
statements  upon  which  the  county  assessor  may  require 
from  any  person  a  statement  under  oath  setting  forth 
specifically  all  the  real  and  personal  property  owned  by 
such  person  or  in  his  possession  or  under  his  control  at 
twelve  o'clock  noon  on  the  first  day  of  January.  Such 
statement  must  be  in  writing  showing  separately : 


113 

1.  All  property  belonging  to,  claimed  by,  or  in 
the  possession  or  under  the  control  or  management  of 
such  person; 

2.  All  property  belonging  to,  claimed  by,  or  in 
the  possession  or  under  control  or  management  of  any 
firm  of  which  such  person  is  a  member ; 

3.  All  property  belonging  to,  claimed  by,  or  in 
the  possession  or  under  the  control  or  management  of 
any  corporation  of  which  such  person  is  president,  secre- 
tary, cashier  or  managing  agent; 

4.  The  county  in  which  such  property  is  situated 
or  in  which  it  is  liable  to  taxation,  and  if  liable  to  taxation 
in  the  county  in  which  the  statement  was  made,  also  the 
city,  town,  school  district,  road  district,  or  other  revenue 
district  in  which  it  is  situated; 

5.  A  statement  of  all  lands  in  parcels  or  subdi- 
visions, not  exceeding  six  hundred  forty  acres  each,  and 
the  sections  and  fractional  sections  of  all  tracts  of  land 
containing  more  than  six  hundred  forty  acres  which  have 
been  sectionized  by  the  United  States*  Government;  im- 
provements and  personal  property,  including  all  vessels, 
steamers,  and  other  water  craft,  and  all  taxable  state, 
county,  city  or  other  municipal  or  public  bonds,  and 
the  taxable  bonds  of  any  person,  firm  or  corporation, 
and  the  deposited  money,  gold  dust  and  other  valuables, 
and  the  names  of  the  persons  with  whom  such  deposits 
are  made,   and  the  places   in  which  they  may  be   found. 

6.  All  solvent  credits,  secured  or  unsecured  due  or 
owing  to  such  persons,  or  to  any  firm  of  which  he  is 
a  member,  or  due  or  owing  to  any  corporation  of  which 
he  is  president,  secretary,  cashier  or  managing  agent, 
deducting  from  the  sum  total  of  such  credits  only  such 
debts,  secured  or  unsecured,  as  may  be  owing  by  such 
person,  firm  or  corporation;  provided,  that  mutual  benefit 
building  societies,  incorporated  under  the  laws  of  this 
State  or  of  the  territory  of  Utah,  shall  be  allowed  to 
deduct  from  their  taxable  credits,  the  amount  due  to 
the  members    (stockholders)    of  such  societies. 


S-TTl 


114 

18.  In  making  up  the  amount  of  credits  which  any 
person  is  required  to  list,  he  will  be  entitled  to  deduct 
from  the  gross  amount  of  such  credits  the  amount  of  all 
bona  fide  debts  owing  by  him,  but  no  acknowledgment  of 
indebtedness  not  founded  on  actual  consideration,  no  such 
acknowledgment  made  for  the  purpose  of  being  so  de- 
ducted, must  be  considered  a  debt  within  the  intent  of  this 
section;  and  no  person  is  entitled  to  a  deduction  on 
account  of  an  obligation  of  any  kind  given  to  an  insurance 
company  for  the  premium  of  insurance,  nor  on  account  of 
any  unpaid  subscription  to  any  institution  or  society,  nor 
on  account  of  a  subscription  to,  or  instalment  payable  on 
the  capital  stock  of  any  company  or  corporation;  and. 
no  liability  of  any  person  or  persons,  company  or  corpora- 
tion as  surety  for  another  must  be  deducted;  and  no 
other  liability  of  any  person  or  persons,  company  or 
corporation  on  any  bond  or  undertaking  must  be  deducted ; 
and  no  deduction  must  be  made  in  any  case  unless  the 
party  claiming  such  deduction  discloses  to  the  assessor, 
under  oath,  the  name  or  names  of  the  persons  to  whom 
such  party  is  indebted,  and  the  amount  of  such  indebt- 
edness to  each,  and  also  that  such  indebtedness  is  not 
barred  by  the  statute  of  limitations,  or  in  case  such 
indebtedness  is  so  barred,  acknowledges  such  indebtedness 
in  writing,  duly  subscribed.  No  debt  is  to  be  deducted 
unless  the  statement  shows  the  amount  of  such  debt,  as 
stated,  under  oath  in  the  aggregate.  Whenever  one 
member  of  a  firm,  or  one  of  the  proper  officers 
of  a  corporation,  has  made  a  statement  showing 
the  property  of  the  firm  or  corporation,  another  member 
of  the  firm  or  another  officer  need  not  include  such 
property  in  the  statement  made  by  him;  but  this  state- 
ment must  show  the  name  of  the  person  or  officer  who 
made  the  statement  in  which  such  property  is  included. 
The  fact  that  such  statement  is  not  required,  or  that 
a  person  has  not  made  such  statement  under  oath,  or 
otherwise,  does  not  relieve  the  property  from  taxation. 

19.  The  blank  form  of  statement  must  be  furnished 
to  the  taxpayer  by  mail  or  left  at  his  residence  or  usual 
place  of  business,  or  may  be  delivered  to  him  personally. 
The  assessor  may  fill  out  the  statement  at  the  time  he 
presents   it,   or  he  may  require  the   taxpayer,   within   an 


115      ' 

appointed  time,  not  more  than  twenty  days,  to  return 
the  same  to  him  properly  filled  out.  The  assessor  must, 
either  in  person  or  by  mail,  deliver  to  the  person  making 
the  statement  a  copy  of  the  same,  if  corrections  are  made, 
showing  such  corrections. 

20.  Every  assessor  has  power: 

1.  To  require  any  person  found  within  such 
assessor's  county  to  make  and  subscribe  an  affidavit 
respecting  his  property,  giving  his  name,  place  of  residence 
and  post  office  address. 

2.  To  subpoena  and  examine  any  person  in  rela- 
tion to  any  statement  furnished  by  him  or  which  dis- 
closes property  which  is  assessable  in  the  county,  and 
he  may  exercise  this  power  in  any  county  where  the 
person  whom  he  desires  to  examine  may  be  found,  but 
has  no  power  to  require  such  person  to  appear  before 
him  in  any  other  county  than  that  in  which  he  resides 
or  in  which  the  subpoena  is  served. 

21.  Every  person  who  wilfully  refuses  to  furnish 
the  statement  hereinbefore  required  or  to  make  and  sub- 
scribe such  affidavit  respecting  his  name  and  place  of 
residence,  or  to  appear  and  testify  when  requested  to 
do  so  by  the  assessor,  as  above  provided,  shall  be  sub- 
jected to  an  arbitrary  assessment  made  by  the  assessor, 
which  assessment  shall  be  made  from  the  best  information 
readily  obtainable  by  said  assessor,  and  when  made  shall 
be  doubled,  and  the  double  assessment  so  made  shall 
not  be  reduced  by  the  Board  of  Equalization. 

22.  If  the  owner  or  claimant  of  any  property  not 
listed  by  any  other  person  is  absent  or  unknown,  the 
assessor  must  make  an  estimate  of  the  value  of  such 
property. 

23.  If  the  name  of  the  absent  owner  is  known 
to  the  assessor,  or  if  it  appears  of  record  in  the  office 
of  the  county  recorder  where  the  property  is  situated, 
the  property  must  be  assessed  in  such  name.  If  unknown 
to  the  assessor,  and  if  it  does  not  appear  of  record  as 


116 
aforesaid,    the    property    must    be    assessed    to    "unknown 


24.  The  assessor,  as  soon  as  he  receives  a  state- 
ment of  any  taxable  property  situated  in  another  county, 
must  make  a  copy  of  such  statement  for  each  county  in 
which  the  same  is  situated,  and  transmit  the  same  by 
mail  to  the  assessor  ^  of  the  proper  county,  who  must 
assess  the  same  as  other  taxable  property  therein. 

25.  All  personal  property  consigned  for  sale  to 
any  person  within  this  state  from  any  place  out  of  the 
state  must  be  assessed  as  any  other  property. 

26.  When  a  person  is  assessed  as  agent,  trustee, 
bailee,  guardian,  executor,  or  administrator,  his  represen- 
tative designation  must  be  added  to  his  name  and  the 
assessment  entered  on  a  separate  line  from  his  individual 
assessment. 

27.  The  property  of  every  firm  and  corporation 
must  be  assessed  in  the  county  where  the  property  is 
situated,  and  must  be  assessed  in  the  name  of  the  firm 
or   corporation. 

28.  The  undistributed  or  unpartitioned  property 
of  deceased  persons  may  be  assessed  to  their  heirs, 
guardians,  executors,  or  administrators,  or  any  one  of 
them,  and  the  payment  of  taxes  made  by  either  binds 
all  the  parties  in  interest  for  their  equal  proportion. 

29.  The  capital  stock  and  franchises  of  corporations 
and  persons,  except  as  may  be  otherwise  provided,  must 
be  listed  and  taxed  in  the  county,  city,  town,  or  district 
where  the  principal  office  or  place  of  business  of  such 
corporation  or  person  is  located;  if  there  be  no  principal 
office  or  place  of  business  in  the  state,  then  at  the 
place  in  the  state  where  any  such  corporation  or  person 
transacts  business. 

30.  The  personal  property  belonging  to  the  busi- 
ness of  a  merchant  or  manufacturer  must  be  listed  in 
the  city,  town  or  district  where  such  property  is  situated. 


117 
Lands  and  Improvements. 

31.  All  taxable  property  must  be  assessed  at  its 
full  cash  value.  Land  and  improvements  thereon  must 
be  separately  assesesd. 

32.  All  water  rights  which  are  appurtenant  to  lands 
and  used  exclusively  for  the  irrigation  of  said  lands, 
whether  held  in  the  form  of  capital  stock  or  incorporated 
companies  or  otherwise,  shall  be  considered  and  assessed 
as  part  of  the  value  of  the  land  to  which  they  are 
appurtenant. 

Interest  in  State  Lands. 

33.  No  tax  shall  be  levied  upon  lands,  the  title 
to  which  remains  in  the  State,  held  or  occupied  by  any 
person  under  a  contract  of  sale  or  lease  from  the  terri- 
tory or  State  of  Utah,  but  this  provision  shall  not  be 
construed  to  prevent  the  taxation  of  improvements  on 
such  lands  and  the  interest  in  the  land  to  the  extent  of 
money  paid  prior  to  the  levying  such  tax  in  part  payment 
of  the  purchase  price. 

34.  It  shall  be  the  duty  of  the  State  Board  of  Land 
Commissioners,  on  or  before  the  second  Monday  in 
January  of  each  year,  to  transmit  to  the  assessors  of 
the  several  counties  a  statement  showing: 

1.  A  description  of  all  the  property  within  such 
county  sold  by  said  Board  for  which  patents  have  not 
yet  issued; 

2.  The  name  and  post  office  address  of  the  persons 
to  whom  such  sales  were  made ; 

3.  The    consideration    for    such    sale; 

4.  The  amount  paid  by  the  purchaser  to  date  of 
report; 

5.  The  description  of  all  lands  within  the  county 
patented  by  the  State  since  the  date  of  the  last  report, 


118 


together  with  the   name   and   post  office   address  of  the 
patentee. 

35.  It  shall  be  the  duty  of  the  assessor,  at  the 
time  of  assessing  other  real  estate,  to  assess  the  interest 
in  state  lands  within  his  county  in  the  amount  and  to 
the  persons  indicated  by  the  last  report  of  the  State 
Board  of  Land  Commissioners.  - 

36.  In  the  event  that  taxes  levied  and  assessed 
against  any  interest  in  state  lands,  which  have  not  been 
patented,  shall  remain  unpaid,  such  lands  shall  not  be 
advertised  and  sold  for  the  non-payment  of  taxes,  but 
it  shall  be  the  duty  of  the  county  treasurer,  before  the 
second  Monday  in  February  in  each  year,  to  report 
to  the  State  Board  of  Land  Commissioners  the  amount  of 
such  unpaid  tax,  to  which  shall  be  added  the  amount  of 
penalty  attached  because  of  such  delinquency, 

37.  It  shall  be  the  duty  of  the  State  Board  of 
Land  Commissioners  to  keep  a  record  of  the  reports  of 
the  county  treasurers  of  the  several  counties  in  relation 
to  unpaid  taxes  on  interests  in  State  lands,  and  no 
patent  may  be  delivere/i  to  the  purchaser  or  the  assignee 
of  any  purchaser  of  state  lands  until  such  purchaser 
shall  produce  a  receipt  from  the  treasurer  of  the  county 
in  which  such  lands  are  situated  for  all  taxes,  penalties, 
costs,  and  interest  at  twelve  per  cent  per  annum;  or 
the  purchaser  may  pay  the  amount  of  said  taxes,  penalties, 
interest  and  costs  to  the  State  Board  of  Land  Com- 
missioners and  take  a  receipt  therefor. 

38.  It  shall  be  the  duty  of  the  State  Board  of 
Land  Commissioners,  immediately  upon  making  collection 
of  delinquent  taxes  as  herein  provided,  to  remit  the 
amount  thereof  to  the  treasurer  of  the  county  in  which 
the  land  is  situated,  and-  shall  make  no  charge  to  the 
said  county  for  such  service. 

39.  In  the  event  that  any  purchaser  of  state  lands, 
against  whom  there  are  delinquent  taxes,  as  certified 
by  the    County   Treasurer   of  the   countv   in   which    such 


119 

lands  are  situated,  shall  pay  to  the  said  State  Board  of 
Land  Commissioners  the  full  amount  of  his  contract 
without,  however,  paying  the  full  amount  of  taxes, 
penalties,  interests  and  costs  certified  against  him,  it 
shall  be  the  duty  of  the  State  Board  of  Land  Commis- 
sioners to  cause  a  patent  to  the  lands  to  be  issued  in 
the  name  of  said  purchaser,  which  said  patent  must  not 
be  delivered  to  said  purchaser  but  transmitted  directly,  to 
the  treasurer  of  the  county  in  which  such  lands  are 
situated. 

40.  Upon  receipt  of  such  patent,  the  county  treasurer 
at  the  next  annual  sale  of  property  for  the  non-payment 
of  delinquent  taxes  shall  cause  said  property  to  be 
advertised  and  sold  for  all  the  delinquent  taxes,  penalties, 
interests  and  costs  charged  against  said  property,  and  to 
issue  a  certificate  of  such  sale  as  is  issued  in  other 
sales. 

41.  The  patent  shall  be  retained  in  the  custody  of 
the  county  treasurer  until  redemption  from  such  sale  is 
made  or  until  a  decree  has  been  obtained  on  the  certificate 
issued  in  pursuance  thereof.  Upon  redemption  it  must 
be  delivered  to  the  redemptioner  or  on  entry  of  decree 
to  the  plaintiff  obtaining  such  decree. 


Canal  and  Water  Rights. 

42.  All  water  rights,  whether  held  in  the  form 
of  capital  stock  of  incorporated  companies  or  otherwise; 
owned  by  corporations  or  individuals,  not  used  exclusively 
for  the  irrigation  of  lands  owned  by  such  individuals, 
shall  be  taxed  at  the  cash  value  thereof. 

43.  It  shall  be  the  duty  of  the  president,  secretary  or 
other  managing  official  of  every  canal  or  irrigation  com- 
pany in  this  State,  whose  canals  or  property  are  located 
entirely  within  one  county,  to  report  annually  upon  blanks 
furnished  by  the  county  assessor,  on  or  before  the  first 
Monday  in  January,  to  the  county  assessor  the  number 
and  value  of  all  shares  of  stock  in  said  company,  and  the 
name  and  postoffice  address  of  the  owner  thereof. 


120 

44.  It  shall  be  the  duty  of  the  president,  secretary 
or  other  managing  official  of  every  canal  or  irrigation 
company  in  this  State,  whose  canals  or  property  are 
located  and  extend  into  more  than  one  county,  to  report 
annually,  upon  blanks  furnished  by  the  State  Board  of 
Equalization,  on  or  before  the  first  Monday  in  January, 
to  the  State  Board  of  Equalization,  the  number  and 
value  of  all  shares  of  stock  in  said  company,  and  the  name 
and  postoffice  address  of  the  owner  thereof. 

45.  It  shall  be  the  duty  of  the  assessor,  in  assessing 
irrigated  lands,  the  water  for  which  is  procured  from 
any  canal  located  entirely  within  his  county,  to  make  a 
record  of  the  name  of  the  canal  company,  and  description 
by  number  of  the  shares  therein  assessed  with  such  lands. 
No  shares  standing  in  the  name  of  any  person  other  than 
that  of  the  owner  of  the  real  estate  so  assessed,  shall  be 
assessed  in  connection  with  the  land. 

46.  It  shall  be  the  duty  of  the  assessor  to  assess 
in  the  name  of  the  owner  as  shown  by  the  report  from 
the  officials  of  canal  companies,  all  stock  in  canals  located 
entirely  within  his  county,  which  he  has  not  already 
assessed  in  connection  with  lands  belonging  to  such  owner. 

47.  It  shall  be  the  duty  of  the  assessor  in  assessing 
irrigated  lands,  the  water  for  which  is  procured  from 
any  canal  not  located  entirely  within  his  county,  to  give 
to  the  owner  of  such  lands  a  certificate  which  shall  be 
substantially  in  the  following  form: 

State  of  Utah,  County  of ,  ss. 

I   hereby   certify  that   in   connection   with   the   lands 

described   as   tax   number    in 

lot  block  city 

section ,  township ,  range , 

belonging  to  '. ,  I  have 

assessed   shares,  numbered   

in   standing  in  the  name  of  said. 

owner. 

Dated  this day  of 19.  ,  .  . 

Assessor. 

Deputy. 


121 

48.  The  certificate  provided  in  the  foregoing  section 
shall  be  made  in  duplicate  and  on  or  before  the  second 
Monday  in  April  in  each  year,  the  assessor  shall  forward 
such  duplicate  certificates  to  the  State  Board  of  Equal- 
ization. 

49.  It  shall  be  the  duty  of  the  State  Board  of 
Equalization  to  assess  in  the  name  of  the  owner,  as  shown 
by  the  report  from  the  officials  of  canal  companies,  all 
stock  in  canals,  which  are  not  shown  by  assessors'  duplicate 
certificates  to  have  been  already  assessed  in  connection 
with  the  irrigated  lands. 

50.  Should  any  canal  company  fail  to  file  with 
the  assessor  or  with  the  State  Board  of  Equalization,  as 
the  case  may  be,  the  reports  provided  for  in  sections  43 
and  44  in  the  form  required;  and  within  the  time  provided 
it  shall  be  the  duty  of  the  county  assessor  or  of  the  State 
Board  of  Equalization,  as  the  case  may  be,  to  assess  all 
of  the  stock  of  such  canal  companies  to  the  company 
itself  and  such  assessment  shall  not  be  reduced  by^  any 
Board  of  Equalization. 

51.  In  case  any  assessor  shall  fail  to  file  with  the 
State  Board  of  Equalization,  duplicates  for  any  certificate 
issued  by  him  under  the  provisions  of  section  47,  and  in 
consequence  thereof,  the  stock  held  by  the  owner  is  twice 
assessed,  the  assessor  shall  be  liable  on  his  official  bond 
for  all  damages  caused  to  the  owner  of  such  stock  by 
reason  of  such  failure. 


Assessments  by  State  Board  of  E qimlization.    ' 

52.  The  State  Board  of  Equalization  must  meet  at 
the  State  Capital  on  the  first  Monday  in  February  and 
continue  in  open  session  at  the  State  Capital,  or  at  such 
other  place  in  the  State  as  the  board  may  determine, 
until  the  first  Monday  in  April,  and  later  if  the  business 
of  the  board  requires  it,  and  at  such  meetings  assess  at 
their  actual  value  at  12  o'clock,  noon,  on  the  first  day 
of  January  of  each  year,  all  the  property  and  franchises 


122     • 

of  railroad,  car,  street  railroad,  telegraph,  telephone,  elec- 
tric light,  pipe  line,  power,  canal,  irrigating  and  express 
companies  operating  in  more  than  one  county  in  this  State ; 
and  all  the  machinery  used  in  mining,  and  all  property 
and  surface  improvements  upon  or  appurtenant  to  mines 
and  mining  claims,  and  the  net  annual  proceeds  of  all 
mines  or  mining  claims.  But  franchises  derived  from 
the  United  States  must  not  be  assessed.  All  such  property 
must  be  assessed  in  the  name  of  the  owner,  person,  cor- 
poration, or  association  owning,  leasing,  or  using  the 
same,  and  as  soon  as  such  assessment  is  completed,  each 
owner  or  proper  representative  must  be  furnished  with 
a  copy  of  his  individual  assessment. 

On  the  third  Monday  in  April  the  board  shall  again 
reconvene  in  open  session  at  the  State  Capital,  and  con- 
tinue in  session  not  later  than  the  second  Monday  in 
May,  and  at  such  session  the  owner  of  any  property 
assessed  by  the  State  Board  of  Equalization  may  apply  to 
have  the  same  corrected  in  any  particular,  and  the  board 
may  correct  and  increase  or  lower  the  assessment  made 
by  it.  After  all  applications  for  corrections  are  disposed 
of,  the  board  must  apportion  the  total  assessment  of  all 
property  and  franchises  of  such  companies,  mines  and 
mining  claims,  and  the  net  proceeds  of  mines,  to  the 
several  counties  through  or  into  which  the  property  of 
such  companies  extends  or  operates,  or  in  which  the 
mines  or  mining  claims  are  situated  in  proportion  to  the 
value  thereof  in  each  county;  provided,  that  all  franchises 
and  rolling  stock  of  said  companies  shall  be  apportioned 
to  the  several  counties  in  the  proportion  that  the  value 
of  the  property  of  each  of  said  companies,  exclusive  of 
franchises  and  rolling  stock  in  each  county,  bears  to 
the  total  value  of  the  property  of  such  companies,  excluding 
franchises  and  rolling  stock  in  the  State.  Rolling  stock 
of  standard  and  narrow  gauge  railroads  of  said  companies 
shall  be  apportioned  to  their  standard  and  narrow  gauge 
lines  respectively. 

Mines. 

53.  All  mines  and  mining  claims,  both  placer  and 
rock  in  place,  containing  or  bearing  gold,  silver,  copper, 


123 

lead,  coal,  or  other  valuable  mineral  deposits,  after  pur- 
chase thereof  from  the  United  States,  shall  be  taxed  at 
the  price  paid  the  United  States  therefor,  unless  surface 
ground,  or  some  part  thereof  of  such  mine  or  claim  is 
used  for  other  than  mining  purposes,  and  has  a  separate 
and  independent  value  for  such  other  purposes;  in  which 
case  said  surface  ground,  or  any  part  thereof,  so  used  for 
other  than  mining  purposes,  shall  be  taxed  at  its  value 
for  such  other  purposes;  and  all  the  machinery  used  in 
mining,  and  all  property  and  surface  improvements  upon 
or  appurtenant  to  mines  or  mining  claims,  which  have  a 
value  separate  and  independent  of  such  mines  or  mining 
claims,  and  the  net  annual  proceeds  of  all  mines  and 
mining  claims,  shall  be  taxed  as  other  personal  property. 

54.  Provided,  that  in  the  taxation  of  net  proceeds 
of  non-metallic  mines  or  mining  claims,  including  lime- 
stone, gypsum,  salt,  fire  clay,  etc.,  the  chief  value  of  the 
products  of  which  is  in  the  manufactured  product,  the 
net  proceeds  of  such  mines  or  mining  claims  shall  be 
computed  upon  the  value  of  the  raw  product  of  such  mines 
or  mining  claims,  and  not  upon  the  value  of  the  manufac- 
tured product. 

55.  Every  person,  corporation,  or  association  engaged 
in  mining  upon  a  vein  or  lode,  or  placer  mining  claim, 
containing  any  gold,  silver,  coal  or  other  valuable  mineral 
deposits,  must  each  year  make  out  and  deliver  to  the 
State  Board  of  Equalization  on  or  before  the  first  Monday 
in  February,  upon  blanks  to  be  furnished  by  said  board, 
a  statement  of  the  gross  yield  of  the  above  named  metals 
or  minerals  from  each  mine  owned  or  worked  by  such 
person,  corporation,  or  association  during  the  year  next 
preceding  the  first  Monday  in  January  and  the  value 
thereof,  which  statement  shall  give  the  fine  ounces  of 
gold  and  silver  or  other  precious  metals,  the  pounds  of 
lead  and  copper  and  the  tons  of  iron,  coal  and  other  hydro 
carbons;  also  the  net  annual  proceeds  of  coke  made  from 
coal  or  bullion  or  matte  made  from  ore  not  taxed  which 
is  deemed  a  product  of  mines.  Such  statement  shall  also 
show  in  itemized  detail  all  the  machinery  used  in  mining, 
and    all    property    and    surface    improvements    upon    or 


124 

appurtenant  to  each  mine  or  mining  claim,  which  have  a 
value  separate  and  independent  of  all  such  mines  or 
mining  claims  owned  or  worked  by  such  person,  corpor- 
ation or  association  during  the  year  preceding  the  first 
day  of  January,  and  the  value  of  the  same  at  12  o'clock, 
noon,  on  the  first  day  of  January.  Such  statement  must 
be  verified  by  the  oath  of  such  person,  or  by  the  president, 
secretary,  superintendent  or  mananging  agent  of  such 
corporation  or  association. 

56.  The  statement  mentioned  in  the  preceding 
section  as  to  Net  Proceeds  of  Mines,  must  contain  a  true 
and  correct  account  of  the  actual  expenditures  during  the 
year  of  money  and  labor  in  extracting  the  ore  or  min^tal 
from  the  mine,  transporting  the  same  to  the  mill  or  reduc- 
tion works,  and  the  reduction  of  the  ore  and  the  conversion 
of  the  same  into  money  or  its  equivalent ;  also  for  improve- 
ments necessary  in  and  about  the  workings  of  the  mine, 
and  for  the  construction  of  mills  and  reduction  works 
located  within  the  State,  used  and  operated  exclusively  for 
the  reduction  of  the  ores  of  such  mines.  Such  statement 
must  be  itemized  and  give  such  detailed  information  as 
may  be  required  by  the  State  Board  of  Equalization  to 
enable  said  board  to  verify  the  accuracy  of  said  statement, 
and  must  not  include  the  expenditures  for  the  aforesaid 
purposes  of  any  other  year  than  that  covered  by  such 
statement,  nor  shall  it  include  office  expenses  nor  the 
salaries  nor  any  portion  thereof  of  any  person  or  officer 
not  actually  engaged  in  the  work  of  the  mine  or  per- 
sonally superintending  the  management  thereof. 

Work  done  purely  to  determine  the  extent  or  prove 
the  continuity  of  known  ore  bodies  or  for  the  discovery 
of  unknown  ore  bodies  is  hereby  defined  to  be  development 
work,  and  the  cost  thereof  shall  not  be  deducted  from 
the  gross  proceeds  in  determining  the  taxable  net  proceeds. 

Work  that  may  be  charged  to  cost  of  extraction, 
which  may  heretofore  have  been  defined  as  development 
work,  is  hereby  defined  to  be  such  work  only  as  may 
be  proper  or  necessary  to  more  economically  mine  or  bring 
to  the  surface  the  ore  from  known  ore  bodies. 


125 

The  statement  herein  provided  for  shall  be  accom- 
panied by  the  plat  or  map  of  all  claims  owned,  claimed  or 
worked  by  the  person,  firm  or  corporation,  on  any  one 
or  more  of  which  work  is  done  for  which  deduction  is 
claimed,  showing  the  location  or  locations  of  the  work 
done,  a  description  of  the  nature  and  character  of  the 
work,  the  amount  thereof,  and  if  a  continuation  of  work 
formerly  done,  indicating  the  point  of  beginning  of  the 
work  of  the  current  year.  Also  indicating  what  portion 
of  the  work  is  development  work,  and  what  portion  is 
claimed  to  be  in  aid  of  extraction;  and  shall  also  be 
accompanied  by  a  verified  statement  of  account  show- 
ing the  sums  charged  against  such  work  for  labor,  material 
and  supplies. 

57.  The  statement  provided  for  in  the  preceding 
section,  when  properly  examined  and  verified  by  the 
State  Board  of  Equalization,  shall  be  deducted  from  the 
gross  proceeds  of  mines  and  mining  companies  required 
by  section  55  to  be  shown,  and  the  remainder  shall  be 
considered  as  the  net  proceeds  of  such  companies,  and 
shall  be  taxed  by  said  State  Board  of  Equalization  as 
provided  by  Section  52. 

58.  If  any  person,  corporation,  or  association 
engaged  in  mining,  as  mentioned  herein,  refuses  or  neglects 
to  make  and  deliver  to  the  State  Board  of  Equalization 
the  statement  required  in  the  foregoing  sections,  the 
State  Board  of  Equalization  must  assess  the  net  proceeds 
of  mines,  and  the  improvements  and  machinery  of  mines 
and  mining  claims  from  the  best  information  and  knowl- 
edge it  can  obtain,  and  as  a  penalty  for  failure  to  furnish 
said  statement  or  for  furnishing  a  wilfully  false  or  fraud- 
ulent statement  shall  add  one  hundred  per  cent  to  the 
amount  of  the  assessment  so  made. 

59.  The  State  Board  of  Equalization  must  prepare 
each  year  a  book  to  be  called  the  ''Assessment  of  Mines 
and  the  Net  Proceeds  of  Mines,"  in  which  must  be  listed 
alphabetically  and  by  counties  all  mines  and  mining  com- 
panies in  the  State,  and  which  must  show  the  net  proceeds 
of  all  mines,  specifying  in  separate  columns  and  under 
the  appropriate  head: 


126 

1.  Owner  of  the  mine; 

2.  Name  of  the  mine; 

3.  County  in  which  it  is  situated; 

4.  Number  of  tons  extracted  during  the  year; 

5.  Gross  yield  in  dollars; 

6.  Actual  cost  of  extracting  same  from  mine; 

7.  Actual  cost  of  transportation  to  place  of  reduc- 
tion or  sale; 

8.  Actual  cost  of  reduction  or  sale; 

9.  Cost  of  construction  and  repairs  of  mine  and 
reduction  works ; 

10.  Net  proceeds  in  dollars; 

11.  Fine  ounces  of  gold  and  silver,  pounds  of  lead 
and  copper,  tons  of  iron,  coal  and  other  hydro  carbons 
or  other  valuable  mineral  deposits  stated  separately; 

12.  Buildings  and  other  improvements; 

13.  Value  of   improvements; 

14.  Machinery  and  supplies; 

15.  Value  of  machinery  and  supplies; 

16.  Value  of  personal  property  not  otherwise 
enumerated;  > 

17.  Total  value  of  all   property. 

Railroads.  , 

60.  All  railroad  lands  in  this  State  not  actually 
used  as  a  roadbed  or  right  of  way,  or  for  depot,  yard,  or 
other  necessary  railroad  purposes,  shall  be  assessed  by 
the  assessor  of  the  county  in  which  said  lands  are  situated. 

61.  It  shall  be  the  duty  of  each  railway  company, 
whose  lines  extend  into  two  or  more  counties  of  this  State, 
on  or  before  the  first  day  of  December,  A.  D.  1913,  to 


127 

file  in  the  office  of  the  State  Board  of  Equalization  a 
map  or  maps  drawn  to  a  scale  of  not  less  than  two 
inches  to  the  mile,  platting  the  lands  actually  used  by 
said  railway  as  a  roadbed  or  right  of  way,  or  for  depot, 
yard,  or  other  necessary  railway  purposes.  Said  map 
shall  indicate  the  section,  township  and  range,  or  lot, 
block,  and  city  or  town,  as  the  case  may  be,  in  which 
such  lands  are  situated,  and  shall  also  indicate  the  location 
of  county  lines.  All  lands  embraced  within  any  one  county 
shall  appear  on  a  single  sheet  of  said  map,  but  nothing 
herein  shall  be  construed  to  prevent  the  showing  of  lands 
in  two  or  more  counties  on  a  single  sheet. 

62.  It  shall  be  the  duty  of  such  railway  company, 
annually  on  or  before  the  first  day  of  December  of  each 
year  after  the  year  1913,  to  file  with  the  State  Board  of 
Equalization,  a  map  or  maps  showing  changes,  if  any, 
since  the  filing  of  the  last  map  in  the  lands  claimed  and 
owned  by  said  company  as  hereinbefore  designated.  Said 
maps  shall  be  provided  one  for  each  county  in  which  any 
changes  have  been  made  in  the  land  so  designated,  and  no 
map  need  be  filed  for  any  county  in  which  no  changes 
have  been  made  since  the  filing  of  the  last  map. 

63.  If  for  any  reason  the  State  Board  of  Equal- 
ization shall  be  satisfied  that  any  lands  belonging  to  any 
such  railway  company,  not  actually  used  as  a  roadbed,  or 
right  of  way,  or  for  depot,  yard,  or  other  necessary  pur- 
poses, have  been  included  in  said  maps  or  any  of  them, 
the  State  Board  of  Equalization  shall  require  such  railway 
company  to  amend  and  correct  its  maps  by  excluding 
such  lands  therefrom. 

64.  It  shall  be  the  duty  of  the  State  Board  of 
Equalization,  on  or  before  the  fifteenth  day  of  December, 
A.  D.  1913,  to  transmit  to  the  county  recorders  of  the 
several  counties  a  copy  of  that  portion  of  the  map  or 
maps  of  each  railway  company,  showing  the  location  of 
the  lands  of  said  company  used  as  a  roadbed  or  right 
of  way,  or  for  depot,  yard,  or  other  necessary  purposes 
within  his  county. 


128 

65.  It  shall  be  the  duty  of  the  county  recorder 
upon  the  receipt  of  such  maps  from  the  State  Board  of 
Equalization,-  and  before  turning  over  the  present  owner- 
ship maps  to  the  county  assessor,  to  indicate  on  such 
present  ownership  plats  the  location  of  the  railway  lands 
as  shown  by  the  maps  forwarded  to  him  by  the  State 
Board  of  Equalization. 

66.  All  lands  belonging  to  any  railway  in  this 
State,  shown  by  the  maps,  provided  for  in  the  foregoing 
sections,  to  be  used  as  a  roadbed  or  right  of  way,  or  for 
depot,  yard,  or  other  necessary  railway  purposes,  shall  be 
assessed  by  the  State  Board  of  Equalization. 

67.  All  lands  belonging  to  any  railway  company  in 
this  State,  not  shown  by  the  maps  provided  for  in  the 
foregoing  sections,  to  be  actually  used  as  a  roadbed,  right- 
of-way,  or  for  depot,  yard,  or  other  necessary  railroad 
purposes,  shall  be  assessed  .by  the  assessor  of  the  county 
in  which  such  lands  are  situated. 

68.  The  president,  secretary,  superintendent  or  man- 
aging agent,  or  such  other  officer  as  the  State  Board  of 
Equalization  may  designate,  of  any  corporation,  and  each 
person  or  association  of  persons  owning  or  operating  any 
railroad,  street  railroad,  car,  telegraph,  telephone,  electric 
light,  pipe  line;  power,  canal,  irrigating  or  express  com- 
panies, in  more  than  one  county  in  this  State  must,  on 
or  before  the  second  Monday  in  February  in  each  year 
furnish  upon  blanks  provided  by  said  board  a  statement 
signed  and  sworn  to  by  one  of  such  officers,  or  by  the 
person  or  one  of  the  persons  forming  such  association, 
showing  in  detail  for  the  year  ending  at  12  o'clock,  noon, 
on  the  first  day  of  January  in  each  year,  all  property, 
real,  personal,  or  otherwise,  owned  by  said  corporation, 
person,  or  association  of  persons  in  the  state,  including  a 
statement  of  mileage  in  each  county,  as  valued  at  12 
o'clock  noon,  on  the  first  day  of  January  of  each  year, 
and  such  other  information  as  the  board  may  require. 
And  the  owner  or  owners  of  all  mines  or  mining  claims 
in  the  State  must,  on  or  before  the  second  Monday  in 
February  in  each  year  furnish,  upon  blanks  provided  by 


129 

said  board,  a  statement  in  detail  showing  the  net  proceeds 
of  such  mines  or  mining  claims  for  the  year  ending  at  12 
o'clock,  noon,  on  the  first  day  of  January  next  preceding, 
and  showing  in  detail  all  the  machinery  used  in  mining 
and  all  property  and  surface  improvements  upon  or 
appurtenant  to  such  mines  or  mining  claims,  which  have 
a  value  separate  and  independent  of  all  such  mines  or 
mining  claims  as  valued  at  12  o'clock  noon  on  the  first 
day  of  January  of  each  year,  which  statement  must  be 
sworn  to  by  the  president,  secretary,  superintendent,  or 
managing  agent  or  such  other  officer  as  the  State  Board 
of  Equalization  may  designate,  or  by  the  owners  of  such 
mines   or  mining  claims. 

Any  officer  of  a  railroad,  street  railroad,  car, 
telegraph,  telephone,  electric  light,  pipe  line,  power,  canal, 
irrigating  or  express  company,  or  any  owner  or  owners 
of  mines  and  mining  claims,  or  officers  of  companies 
owning  mines  or  mining  claims,  failing  on  demand  to 
furnish  the  statement  required,  shall  be  subjected  to  an 
arbitrary  assessment  made  by  the  State  Board  of  Equal- 
ization, which  assessment  shall  be  made  from  the  best 
information  readily  obtainable  by  said  board,  and  when 
made  shall  be  doubled,  and  the  double  assessment  so  made 
shall  not  be  reduced. 

69.  In  assessing  public  service  corporations,  and 
for  the  purpose  of  determining  the  fair  cash  value  of  the 
property  and  franchises  thereof,  the  State  Board  of  Equal- 
ization shall  inform  itself  as  fully  as  may  be  of: 

1.  The  actual  cash  value  of  the  tangible  property  of 
the  corporation  within  this  State,  including  in  the  case  of 
railroad  and  car  companies  the  value  of  the  proportionate 
number  of  cars  and  engines  owned  by  the  company,  on 
a  mileage  basis; 

2.  The  valuation  placed  by  the  investing  public  on 
the  property  of  the  corporation,  as  evidenced  by  the 
average  market  price  during  the  twelve  months  preceding 
the  date  of  the  assessment  of  the  outstanding  stocks  and 
bonds  of  the  corporation,  plus  its  floating  indebtedness; 


P-TR 


130 

3.  The  total  amount  of  the  dividends  paid  during 
the  twelve  months  preceding,  plus  indebtedness  retired 
and  the  amount  added  to  surplus,  reserve  and  sinking 
funds ; 

4.  The  net  earnings  of  the  corporation  for  its  fiscal 
year  next  preceding  the  date  of  the  assessment; 

5.  The  gross  earning  of  the  corporation  for  its  fiscal 
year  next  preceding  the  date  of  the  assessment. 

Such  proportion  of  the  amounts  so  ascertained  as  tend 
to  show  the  value  of  the  entire  property,  shall,  in  the  case 
of  corporations  doing  an  interstate  business  be  taken  as 
the  mileage  in  this  State  bears  to  the  total  mileage  of 
said   corporation. 

From  the  information  so  obtained,  and  from  such 
other  information  as  the  said  board  may  secure,  which 
it  may  consider  relevant  and  proper,  the  State  Board  of 
Equalization  shall  assess  the  property  of  such  corpor- 
ations in  such  amounts  as  shall  seem  as  accurately  as 
possible  to  represent  the  actual  cash  value  of  the  property 
of  such  corporations  within  this  State. 

70.  The  assessment  of  property  of  car  companies 
shall  be  apportioned  to  the  several  counties  of  the  State 
in  which  railroads  are  operated  in  the  proportion  that 
the  value  of  all  railroad  property  (not  including  the 
property  of  car  companies)  in  each  county  bears  to  the 
total  of  all  railroad  property  in  the  State,  taking  into 
consideration  only  the  assessments  made  by  the  State 
Board  of  Equalization. . 

71.  The  State  Board  of  Equalization  shall,  before 
the  fourth  Monday  of  May,  transmit  by  mail  to  the 
county  auditor  of  each  county  a  statement  showing  the 
property  assessed  and  the  assessed  value  of  the  same  as 
fixed  and  apportioned  to  the  county.  The  county  auditor 
must  enter  the  statement  on  the  assessment  roll  of  the 
county,  and  enter  the  amount  of  all  assessments  and 
apportionments  to  the  county  in  the  column  of  the 
assessment  roll,  as  aforesaid,  which  shows  the  total 
value  of  all  property  for  taxation  in  the  county.    No  board 


131 

of  county  commissioners  nor  county  board  of  equalization 
has  power  to  change  any  assessment  fixed  by  the  State 
Board  of  Equalization. 

72.  If  the  owner  of  any  property  assessed  by  the 
State  Board  of  Equalization  is  dissatisfied  with  the  assess- 
ment made  Ly  such  board,  such  owner  may,  between  the 
third  Monday  in  April  and  the  second  Monday  in  May, 
apply  to  the  board  to  have  the  same  corrected  in  any 
particular,  and  the  board  may  correct  and  increase  or 
lower  the  assessment  made  by  it,  so  as  to  equalize  the 
same  with  the  assessment  of  other  property  in  the  State, 
but  the  board  shall  have  no  power  subsequent  to  said 
second  Monday  in  May  to  make  reductions  upon  assess- 
ments already  made. 

73.  The  State  Board  of  Equalization  must  prepare 
each  year  a  book  to  be  called  "Assessment  and  Apportion- 
ment of  Railroad  and  Other  Companies,''  in  which  must 
be  entered  all  assessments  made  by  the  board,  except  as 
provided  in  Section  59,  either  in  writing  or  both  writing 
and  printing.  Each  assessment  so  entered  must  be  signed 
by  the  president  and  secretary  of  the  board.  In  said 
described  book  must  be  entered  the  names  of  the  rail- 
road and  other  property  assessed  by  the  board,  the  names 
of  the  corporations  to  which,  or  the  name  of  the  person 
or  association  to  whom  the  same  were  assessed;  the  whole 
number  of  miles  of  the  railroad,  and  street  and  interurban 
railroads,  and  the  property  of  all  other  companies  assessed 
by  the  board  in  detail,  the  number  of  miles  in  each  county, 
the  total  assessment  of  all  such  property,  and  the  amount 
of  the  apportionment  of  such  total  assessments  to  each 
county. 

Public  Service  Corporations  All  in  One  County. 

74.  Railroad,  street  railroad,  car,  telegraph  and 
telephone  lines  operated  wholly  in  one  county,  and  electric 
light  lines  and  similar  improvements  and  the  franchises; 
canals,  ditches  and  flumes  and  the  franchises  of  the  same, 
when  separately  taxable,  must  be  listed  and  assessed  in 
the  county  in  which  such  property  is  located. 


132 

75.  In  assessing  the  properties  described  in  the 
foregoing  section,  the  county  assessor  shall  inform  him- 
self as  fully  as  may  be  of : 

1.  The  actual  cash  value  of  the  tangible  property 
of  the  person,  firm  or  corporation  within  the  county; 

2.  If  a  corporation,  the  valuation  placed  by  the 
investing  public  on  the  property  of  the  corporation  as 
evidenced  by  the  average  market  price  during  the  twelve 
months  preceding  the  date  of  the  assessment  of  the  out- 
standing stocks  and  bonds  of  the  corporation  plus  its 
floating  indebtedness; 

3.  The  total  amount  of  dividends  paid  during  the 
twelve  months  preceding,  plus  indebtedness  retired,  and 
the  amount  added  to  surplus,  reserve  and  sinking  funds; 

4.  The  net  earnings  of  the  person,  firm  or  corpor- 
ation for  its  fiscal  year  next  preceding  the  date  of  its 
assessment ; 

5.  The  gross  earnings  of  the  person,  firm  or  corpor- 
ation for  its  fiscal  year  next  preceding  the  date  of  its 
assessment. 

From  the  information  so  obtained,  and  from  such 
other  information  as  the  said  assessor  may  secure,  which 
he  may  consider  relevant  and  proper,  the  county  assessor 
may  assess  such  property  in  such  amount  as  may  seem  as 
accurately  as  possible  to  represent  the  actual  cash  value 
of  such  property  within  his  county. 

Bank  Stock. 

76.  The  stockholders  in  every  bank  or  banking 
association,  organized  under  the  authority  of  this  State 
or  of  the  United  States,  must  be  assessed  and  taxed  on 
the  value  of  their  shares  of  stock  therein,  in  the  county, 
town,  city  or  district  where  such  bank  or  banking  associa- 
tion is  located,  and  not  elsewhere,  whether  such  stock- 
holders reside  in  such  place  or  not.  To  aid  the  assessor 
in  determining  the  value  of  such  shares  of  stock,  the  cashier 
or   other    accounting    officer    of    every    such    bank    must 


133 

furnish  a  verified  statement  to  the  assessor  showing  the 
amount  and  number  of  shares  of  the  capital  stock  of  each 
bank,  the  amount  of  its  surplus  or  reserve  fund  or 
undivided  profits,  the  amount  of  investments  in  real  estate, 
which  real  estate  must  be  assessed  to  said  bank  and  taxed 
as  other  real  estate,  and  the  names  and  places  of  residence 
of  its  stockholders,  together  with  the  number  of  shares 
held  by  each. 

77.  In  the  assessment  of  the  shares  of  stock  men- 
tioned in  the  next  preceding  section,  each  stockholder 
must  be  allowed  all  the  deductions  and  exemptions  allowed 
by  law  in  assessing  the  value  of  other  taxable  personal 
property  owned  by  individual  citizens  of  this  State,  and 
the  assessment  and  taxation  must  not  be  at  a  greater  rate 
than  is  made  or  assessed  upon  other  moneyed  capital  in 
the  hands  of  individual  citizens  of  this  State. 

78.  In  making  such  assessment,  there  must  also 
be  deducted  from  the  value  of  such  shares  such  sum  as 
is  in  the  same  proportion  to  such  value  as  the  assessed 
value  of  the  real  estate  of  such  bank  or  banking  asso- 
ciation in  which  such  shares  are  held,  bears  to  the  whole 
amount  of  the  capital  stock,  surplus,  reserve,  and  undivided 
profits  of  such  bank  or  banking  association. 

79.  The  shares  of  the  capital  stock  of  banks 
organized  under  the  laws  of  the  United  States,  not  located 
in  this  State,  owned  by  residents  of  this  State,  are  not 
subject  to  taxation. 

80.  All  taxes  levied  under  the  provisions  of  the 
foregoing  sections  upon  the  shares  of  stock  of  banking 
corporations  or  associations  must  be  paid  by  the  corpor- 
ation or  association,  and  the  amount  of  any  such  tax  paid 
may  be  retained  and  deducted  by  the  bank  out  of  the 
dividends  upon  the  stock  or  out  of  any  other  funds  of 
the  stockholder  then  or  thereafter  in  its  hands,  and  a 
paramount  lien  is  hereby  given  to  the  bank  against  the 
stock  upon  which  the  tax  is  so  paid  to  enforce  the  repay- 
ment or  refunding  of  said  tax;  and  no  transfer  or  encum- 
brance of  said  stock  shall  be  made  or  permitted  to  be  made 
by  the  bank,  so  long  as  the  tax  remains  due  and  unpaid. 


134 

81.  Every  corporation  doing  a  banking  business 
in  this  State,  which  is  organized  under  the  laws  of  another 
state  or  of  any  foreign  country,  and  every  private  banker, 
broker,  or  dealer  in  stocks,  must  make  out  and  deliver  to 
the  assessor,  when  required  to  list  personal  property,  a 
verified  statement  upon  blanks  furnished  by  the  assessor, 
showing: 

1.  The  amount  of  money  on  hand  or  in  transit; 

2.  The  amount  of  funds  in  the  hands  of  other  banks, 
brokers,  or  others,  subject  to  draft; 

3.  The  amount  of  checks  or  cash  items  not  included 
in  either  of  the  preceding  items; 

4.  The  amount  of  bills  receivable,  discounted,  or 
purchased,  and  other  credits  due  or  to  become  due,  and 
amounts  receivable; 

5.  All  other  property  appertaining  to  said  business, 
other  than  real  estate,  which  real  estate  must  be  listed 
and  assessed  as  other  real  estate  is  listed  and  assessed 
under  this  title ; 

6.  The  aggregate  amount  of  all  deposits; 

7.  The  amount  of  all  accounts  payable  other  than 
current  deposit  accounts. 

Such  corporation,  private  banker,  broker  or  dealer  in 
stocks,  shall  be  permitted  to  deduct  from  the  credits  the 
amount  of  his  liabilities  as  provided  in  Section  18  and 
Subdivision  6  of  Section  17.  The  statement  required  in 
this  section  must  be  shown  to  be  derived  from  the  books 
of  entry  and  account  ordinarily  in  use  in  the  business  of 
the  person  furnishing  the  statement,  and  the  amount 
shown  therein  must  be  an  average  of  the  corresponding 
amounts  as  shown  by  said  books  of  entry  and  account 
for  a  period  of  ninety  days  next  preceding  the  furnishing 
of  such  statement.  The  verification  required  must  be 
made  by  the  highest  officer  or  employee  in  the  county 
where  the  assessment  is  made,  or  by  the  banker,  broker, 
or  dealer  in  stocks,  in  person. 


135 
Express  and  Stage  Companies. 

82.  The  personal  property  of  express,  transporta- 
tion, and  stage  companies,  steamboats,  vessels,  and.  other 
water  craft  must  be  listed  and  assessed  in  the  county, 
city,  town,  or  district  where  such  property  is  usually 
kept. 


Gas  and  Water  Companies. 

83.  The  personal  property  and  franchises  of  gas 
and  water  companies  must  be  listed  and  assessed  in  the 
county,  city,  town,  or  district  where  the  principal  works 
are  located.  Gas  and  water  mains  and  pipes  laid  in  roads, 
streets,  or  alleys  are  personal  property. 

BHdges  and  Ferries. 

84.  Bridges  and  ferries  and  their  franchises,  owned 
by  persons  or  corporations,  must  be  listed  and  assessed 
in  the  county,  city,  town,  or  district  where  such  property, 
or  any  portion  thereof,  is  located,  and  such  bridges  are 
personal  property. 

Transient  Stock. 

85.  That  for  the  purpose  of  taxation  as  herein- 
after provided,  transient  stock  shall  be  deemed  to  be: 

First.  All  stock  brought  into  the  State  by  any 
person  or  persons  for  the  purpose  of  being  grazed  or 
fed  for  any  length  of  time  exceeding  twenty  days. 

Second.  All  stock  which  is  driven  or  removed  from 
one  county  to  another,  or  from  this  state  to  any  other 
state  for  the  purpose  of  being  grazed  or  fed  for  any 
length  of  time  exceeding  twenty  days. 

86.  It  shall  be  the  duty  of  every  person  or  persons 
within  twenty  days  after  bringing  transient  live  stock 
into   any  county  of  the   State   from   any  other  state,   or 


136 

from  any  county  of  the  State,  to  set  out  certificates 
of  each  herd  signed  by  such  person  or  persons  or  their 
agents, -showing  the  number  and  kind  of  live  stock,  with 
the  mark  and  brands  on  same,  and  file  said  certificate 
with  the  county  assessor  of  the  county  into  which 
said  live  stock  shall  be  brought,  which  certificates  shall 
be  substantially  in  the  following  form: 

State    of    Utah,      ) 
County  of   f  ^^• 

I  hereby  certify  that  on  the.  ...  .  .  .day  of , 

I  brought  into  the  county  of .  . from 

head   of branded on   the 

and  marked 

Dated  this day  of ,  19 ...  . 

Signed    

By    Agent. 

87.  It  shall  be  the  duty  of  the  assessor  to  enter 
in  a  book  to  be  kept  for  that  purpose  a  record  of 
the  certificates  provided  for  in  the  foregoing  section, 
which  record  shall  show  the  name  of  the  owner,  the 
number  and  kind  of  live  stock  described  therein,  how 
marked  or.  branded,  and  the  date  shown  by  the  said 
certificate  when  such  stock  was  brought  into  his  county, 
and  the  date  of  the  filing  of  such  certificate.  Within 
ten  days  after  the  receipt  of  such  certificate,  it  shall 
be  the  duty  of  the  assessor  to  transmit  the  same  to  the 
State  Board  of  Equalization. 

88.  It  shall  be  the  duty  of  the  assessor,  upon 
learning  that  any  transient  live  stock  has  been  brought 
into  his  county  and  has  remained  there  for  more  than 
twenty  days,  without  the  certificate  provided  for  in  the 
foregoing  section  having  been  filed  in  his  office,  to 
immediately  assess  such  livestock  without  reference  to 
the  fact  as  to  whether  or  not  it  has  been  theretofore 
assessed    for    that    year    in    any    other    county,    and    to 


137 

immediately  collect  the  tax  on  such  assessment  or  to 
take  security  for  the  payment  thereof  under  the  pro- 
visions of  section  90.  In  case  such  stock  has  not  been 
previously  assessed,  such  assessment  shall  be  reported 
to  the  State  Board  of  Equalization  as  an  original  assess- 
ment. If  such  stock  has  been  previously  assessed  for  that 
year,  no  report  of  such  assessment  need  be  made  to 
the  State  Board  of  Equalization,  and  the  taxes  collected 
thereon  shall  not  be  subject  to  apportionment. 

89.  It  shall  be  the  duty  of  the  assessor,  upon 
assessing  live  stock,  to  issue  to  the  owner  a  certificate 
which  shall  be  substantially  in  the  following  form: 

State    of    Utah,      t 
County  of    f  ^^* 

I  hereby  certify  that  I  have  this  day  assessed 

head    of branded on and 

marked  as  follows .property  of 

a  resident  of county.  State  of 

Dated  this day  of ,   19 


Assessor. 


Deputy. 

90.  All  state,  county  and  district  taxes  on  all 
transient  live  stock  assessed  shall  be  computed  on  the 
rates  of  the  previous  year,  and  collected  in  advance  by 
the  assessor  of  any  county  in  the  State  in  which  said 
live  stock  is  first  found  on  or  after  January  1st  of  each 
year;  provided,  that  the  owner  or  agent  in  charge  of 
any  such  live  stock  may,  in  lieu  of  paying  said  taxes  in 
advance  execute  a  bond  to  the  county  in  which  he  is 
assessed,  with  two  or  more  sureties  to  be  approved  by 
the  assessor,  and  filed  with  the  treasurer,  conditioned 
that  he  will  regularly  and  punctually  pay  all  taxes  which 
may  become  due  thereon  during  the    year,    which    taxes 


138 

shall  thereafter  be  computed  under  the  levies  of 
the  current  year,  instead  of  on  the  basis  of  those  of  the 
previous  year. 

91.  It  shall  be  the  duty  of  the  State  Board  of 
Equalization,  on  or  before  the  first  Monday  in  March  in 
each  year,  to  make  a  computation  from  the  certificates  on 
file  in  its  office  and  the  records  of  original  assessment 
of  transient  live  stock,  of  the  time  that  each  of  such 
bands  or  herds  of  transient  livestock  has  been  within  each 
of  the  several  counties  of  the  State  during  the  previous 
calendar  year,  and  of  the  amount  of  taxes  that  each 
county  is  entitled  to  receive  and  retain  derived  from 
such  sources.  In  making  such  computation,  each  county 
^hall  be  deemed  to  have  collected  and  received  all  taxes 
on  transient  live  stock  assessed  within  such  county. 

The  State  Board  of  Equalization  shall  notify  the 
county  treasurer  of  each  county  of  the  amount  of  such 
tax  to  which  such  county  is  entitled  for  the  previous  year, 
and  in  case  such  county  has  collected  more  than  the 
amount  to  which  it  is  entitled  as  shown  by  the  statement 
of  said  board,  it  shall  be  the  duty  of  the  county  treasurer, 
within  ten,  days  after  the  receipt  of  the  notice  of  such 
apportionment,  to  remit  to  the  State  Board  of  Equaliza- 
tion the  amount  of  the  difference  between  the  amount 
collected  by  said  county  and  the  amount  to  which  such 
county  is  entitled  as  shown  by  such  statement. 

Upon  making  such  collections  from  the  counties  which 
have  collected  more  than  their  pro  rata  apportionment 
of  the  tax,  it  shall  be  the  duty  of  the  State  Board  of 
Equalization  to  remit  to  the  counties  which  have  collected 
less  than  their  apportionment,  the  difference  between 
the  amount  they  have  actually  collected  and  the  amount 
they  were  entitled  to  receive. 

92.  It  shall  be  the  duty  of  the  county  commis- 
sioners of  each  county,  after  the  settlement  between  the 
county  treasurer  and  the  State  Board  of  Equalization, 
to  apportion  the  taxes,  apportioned  by  said  State  Board 
of  Equalization  to  such  county,  to  the  several  taxing 
districts  as  provided  by  law. 


139 

93.  If  the  assessment  in  the  county  where  first 
made  is  not  for  the  full  number,  then  the  assessor  of  any 
other  county,  in  which  such  transient  live  stock  may  be 
ranging,  is  authorized  to  assess  such  stock  to  the 
number  omitted  on  the  previous  assessment,  and  the  taxes 
on  the  additional  number  so  assessed  shall  be  paid  in 
the  county  where  last  assessment  is  made,  and  the  county, 
county  school  and  district  school  taxes  so  assessed,  shall 
not  be  subject  to  distribution  among  the  several  counties 
in  which  such  transient  stock  is  grazed,  and  need  not  be 
reported  to  the  State  Board  of  Equalization. 

94.  All  transient  live  stock  brought  into  this 
State  from  any  other  state  for  the  purpose  of  being 
grazed,  fed  or  ranged  in  this  State  a  portion  of  the 
year,  and  such  live  stock  has  been  assessed  or  taxes  paid 
thereon  in  any  other  state  for  the  same  year,  upon  satis- 
factory proof  being  made  to  the  assessor  that  an  assess- 
ment has  been  made  or  taxes  paid  thereon  as  provided  in 
this  section,  shall  be  assessed  at  the  full  number  but 
only  for  such  portion  of  the  entire  year's  taxes  as  the 
portion  of  the  year  during  which  it  has  been  ranged, 
grazed  or  fed  in  this  state  bears  to  the  whole  year. 

And  where  transient  live  stock  located  in  this  State 
at  the  beginning  of  the  year  is,  subsequent  to  assessment, 
removed  to  another  state  for  the  purpose  of  being  grazed 
or  fed  for  a  period  exceeding  twenty  days,  and  not  for 
the  purpose  of  being  sold  or  marketed,  the  assessor  upon 
satisfactory  proof  of  such  removal,  and  of  the  time 
during  which  such  live  stock  has  been  out  of  the  state, 
and  of  the  fact  that  taxes  have  been  paid  on  such  live 
stock  for  a  period  at  least  equal  to  the  time  such  live 
stock  has  been  out  of  the  State,  shall  so  amend  his 
assessment,  pursuant  to  the  provisions  of  this  section, 
providing  for  the  assessment  of  transient  live  stock 
brought  into  this  State,  that  such  stock  shall  be  taxed 
only  for  such  portion  of  the  year  as  it  has  been  located 
within   the   State. 

In  the  event  that  the  taxes  on  such  transient  live 
stock  have  been  collected  in  advance,  the  Board  of 
County   Commissioners   of  the   county   so   collecting   such 


140 

taxes  in  advance,  upon  satisfactory  proof  of  the  time 
during  which  such  live  stock  has  been  out  of  the  State, 
and  of  the  amount  of  taxes  paid  thereon  as  hereinbefore 
provided,  shall  order  refunded  to  the  payer  of  such  taxes 
such  portion  of  the  same  as  the  time  during  v^hich  such 
property  has  been  out  of  the  State  bears  to  the  entire 
year,  and  shall  also  order  charged  to  the  State  and 
to  the  several  funds  participating  in  the  said  taxes,,  their 
proportionate  share  of  the  refund  authorized  hereby. 


Property  in  Litigation. 

95.  Money  and  property  in  litigation  in  possession 
of  a  county  treasurer  or  of  a  court  or  a  clerk  thereof, 
or  a  receiver,  must  be  assessed  to  such  treasurer,  clerk, 
or  receiver,  and  the  taxes  paid  thereon  under  the  direction 
of  the  court. 


Concealed  Property. 

96.  Any  property  wilfully  concealed,  removed, 
transferred,  or  misrepresented  by  the  owner  or  agent 
thereof,  to  evade  taxation,  upon  discovery  must  be 
assessed  at  its  double  value,  and  the  assessment  so  made 
must  not  be  reduced  by  the  Board  of  County  Commis- 
sioners. 

Property  Escaping  Assessment. 

97.  Any  property  discovered  by  the  assessor  to 
have  escaped  assessment  may  be  assessed  at  any  time, 
and  when  so  assessed  shall  be  reported  by  the  assessor 
to  the  county  auditor,  and  the  auditor  shall  charge  the 
county  treasurer  with  the  taxes  on  such  property  and 
the  treasurer  shall  give  notice  to  the  party  assessed 
therewith. 

98.  It  shall  be  the  duty  of  the  assessor,  upon  dis- 
covering that  any  property  within  his  county  has  escaped 
assessment  for  any  year  or  years  previous  and  for  which 
it  was  liable  to  assessment,  to  assess  such  property  for 


141 

such  years  as  it  has  escaped  assessment  in  such  amounts 
as  property  of  equal  value  and  of  the  same  kind  was 
assessed  during  such  years,  and  enter  the  same  upon 
the  assessment  roll,  and  it  shall  thereupon  be  the  duty  of 
the  county  auditor  to  compute  the  amount  of  taxes  due  on 
such  assessment  for  each  of  said  years  according  to  the 
levies  for  the  respective  years,  and  it  shall  be  the  duty 
of  the  treasurer  to  advertise  and  sell  such  property 
for  such  delinquent  taxes  in  all  respects  as  for  taxes  for 
the  current  year,  except  that  no  penalty  shall  be  added 
for  the  non-payment  of  such  taxes. 

Property  Brought  into   County  After  Second  Monday  in 
April. 

99.  When  any  personal  property  liable  to  taxation 
is  brought  into  a  county  at  any  time  after  the  second 
Monday  in  April,  and  such  property  has  not  been  assessed 
for  that  year,  it  must  be  listed  and  assessed  the  same 
as  if  it  had  been  in  the  county  at  the  time  of  the  regular 
assessment,  and  such  assessment  shall  be  reported  by  the 
assessor  to^  the  auditor,  who  shall  charge  the  treasurer 
with  the  taxes  thereon,  and  the  tax  must  be  collected 
by  the  treasurer  as  hereinbefore  provided. 

Assessments  for  Cities  and  Towns, 

100.  Assessments  for  the  taxes  of  each  incorporated 
city  and  town  in  this  State  shall  be  made  by  the  County 
Assessor  of  the  county  in  which  such  incorporated  city 
or  town  is  situated,  at  the  same  time  that  assessments  for 
State  and  county  taxes  are  made,  and  the  list  of  property 
in  each  incorporated  city  and  town  in  his  county,  and  the 
valuation  thereof  shall  be  so  made  by  the  county  assessor 
that  the  property  in  each  and  the  valuation  thereof  can 
be  separately  shown. 

101.  On  or  before  the  first  Monday  of  June  in 
each  year,  the  county  assessor  of  each  county  in  which 
there  is  situated  any  incorporated  city  or  town  shall 
deliver  to  the  clerk  or  recorder  of  each  city  and  to  the 
clerk  or  president  of  the  board  of  trustees  of  each  town 


142 

a  statement  showing  the  aggregate  valuation  of  all  tax- 
able property  in  such  city  or  town. 

Assessor's  Liability. 

102.  The  Assessor  and  his  sureties  are  liable  on  his 
official  bond  for  all  taxes  on  property  within  the  county 
which,  through  his  willful  failure  or  neglect,  is  unassessed 
or  which  has  been  by  him  wilfully  assessed  at  less  than 
its  cash  value. 

103.  The  county  attorney  must,  after  the  Assessor 
completes  the  assessment  roll  for  the  year,  commence  an 
action  upon  the  Assessor's  bond  for  all  taxes  lost  from 
such  wilful  failure  or  neglect. 

104.  On  the  trial  of  such  action,  the  value  of  the 
property  unassessed  being  shown,  judgment  fc^'  the 
amount  of  taxes  that  should  have  been  collected  thereon 
and  remaining  uncollected  must  be  entered. 

Completion  of  Assessment  Roll. 

105.  On  or  before  the  second  Monday  in  April  in 
each  year,  the  assessor  must  complete  his  assessment  roll 
and  deliver  the  same  to  the  county  treasurer. 

Prosecution  of  Assessor  for  Fraud. 

106.  Whenever  the  State  Board  of  Equalization  is 
satisfied  that  the  assessor  or  deputy  assessor  of  any  county 
has  fraudulently  or  corruptly  assessed  any  property,  it 
must  immediately  inform  the  county  attorney  of  such 
county  in  writing  of  that  fact,  with  the  request  that  such 
assessor  or  deputy  assessor  be  prosecuted,  and  the  county 
attorney  must  at  once  comply  with  such  request. 

Assessor  to  Furnish  Information  to  State  Board 

107.  The  county  assessor  shall  furnish  to  the  State 
Board    of    Equalization,    promptly    upon    demand,     any 


143 

information  it  may  require  as  to  the  several  kinds  of 
personal  and  real  property  and  the  assessed  value  thereof, 
assessed  in  the  county. 

Penalties. 

108.  Every  assessor  who  fails  to  complete  and 
deliver  his  assessment  roll  to  the  county  treasurer  within 
the  time  prescribed  by  law,  or  who  fails  to  transmit  the 
information  mentioned  in  the  preceding  section  to  the 
State  Board  of  Equalization,  within  a  reasonable  time, 
shall  forfeit  the  amount  of  three  months'  salary  to  be 
recovered  on  his  official  bond  for  the  use  of  the  county, 
or  to  be  deducted  from  his  salary  by  the  board  of  county 
commissioners. 


EQUALIZATION. 

109.  On  or  before  the  first  Monday  .in  May,  the 
county  treasurer  shall  furnish  to  each  taxpayer,  by  mail, 
to  addresses  noted  on  the  assessment  roll,  postage  prepaid, 
a  notice  of  the  kind  and  valuation  of  property  assessed 
against  him,  and  of  the  day  fixed  by  the  Board  of  Equal- 
ization for  hearing  complaints,  which  notice  shall  be 
mailed  at  least  ten  days  before  the  first  day  of  hearing, 
and  the  treasurer  shall  then  return  said  assessment  roll 
to  the  Board  of  County  Commissioners,  who  shall  con- 
stitute a  County  Board  of  Equalization  as  hereinafter 
provided. 

110.  At  the  time  of  mailing  the  notice,  provided  for 
in  Section  109,  the  treasurer  shall  indicate  by  a  check 
mark  in  a  column  provided  for  that  purpose  on  the  assess- 
ment roll,  the  fact  that  such  notice  has  been  duly  mailed, 
and  the  presence  of  such  check  mark  opposite  the  name 
of  the  taxpayer  in  such  column  shall  be  prima  facie 
evidence  of  the  mailing  of  such  notice. 

111.  On  the  first  Monday  in  July,  the  State  Board 
of  Equalization  shall  reconvene  at  the  State  Capitol  or  at 
such  other  place  as  it  may  determine,  and  at  such  session 


144 

shall  examine  and  compare  the  reports  of  the  county 
auditors  made  on  the  first  Monday  in  July  for  the  purpose 
of  equalizing  the  taxable  property  of  the  several  counties 
in  the  State  for  the  purpose  of  taxation ;  make  all  necessary 
orders  to  accomplish  such  equalization,  report  all  changes 
in  valuations  to  the  respective  county  auditors,  and  to  the 
State  Auditor,  make  the  annual  state  tax  levy,  and  be 
and  remain  in  session  until  all  business  that  may  properly 
come  before  the  board  is  disposed  of. 

112.  The  county  commissioners  of  each  county,  as  a 
board  of  equalization,  shall  equalize  the  assessment  roll 
of  the  whole  county,  including  the  assessment  for  general 
taxes  of  all  cities  and  incorporated  towns  situated  in  the 
county,  at  the  times  and  in  the  manner  provided  by  law 
for  equalizing  assessments  for  State  and  county  taxes. 

113.  When,  after  a  general  investigation  by  the 
State  Board  of  Equalization,  the  property  or  any  class 
of  property  as  enumerated  in  any  county,  is  found  to  be 
assessed  above  or  below  its  full  cash  value,  the  board 
may,  without  notice,  so  determine  and  must  add  to  or 
deduct  from  the  valuation  of  the  property  so  found  to  be 
above  or  below  its  full  cash  value,  such  per  cent 
respectively  as  is  sufficient  to  raise  or  reduce  it  to  its 
full  cash  value. 

114.  When  the  equalization  among  the  several 
counties  is  completed,  the  secretary  of  the  board  must 
transmit  to  each  county  auditor  a  statement  of  the  changes 
made  by  the  board  in  the  assessment  roll  of  his  county, 
and  to  the  state  auditor'  a  statement  of  all  changes  made 
in  the  assessment  rolls  of  all  the  counties  in  the  State, 
and  of  the  per  cent  to  be  added  or  deducted  from  the 
valuation  of  the  property  affected  by  such  changes,  which 
is  prima  facie  evidence  of  the  regularity  of  all  proceedings 
of  the  board,  resulting  in  the  action  which  is  the  subject 
matter  of  the  statement. 

115.  On  the  second  Monday  in  August  the  Board 
of  County  Commissioners  of  each  county  must  make  and 
cause  to  be  entered  in  the  proper  record  an  order  stating 


145 

and  declaring  the  property  assessed  by  the  State  Board 
of  Equalization  apportioned  to  such  county;  and  the  said 
Board  of  County  Commissioners,  acting  as  a  Board  of 
equalization  for  said  county,  shall  in  like  manner  apportion 
the  assessed  valuation  of  all  the  property  and  franchises 
of  railroad,  car,  street  railway,  telegraph,  telephone, 
electric  light,  pipe  line,  power,  canal,  irrigating  and  express 
companies,  so  apportioned  to  said  county  by  the  State 
Board  of  Equalization,  to  the  several  city,  town,  school, 
road,  or  other  lesser  taxing  districts  in  the  county  through 
or  into  which  said  property  extends ;  and  the  county  auditor 
must  transmit  to  the  city  or  town  council,  or  the  trustees 
or  other  legislative  bodies  of  incorporated  cities  and  towns, 
the  trustees  of  each  school  district,  and  the  legal  authorities 
of  other  taxing  districts  in  which  said  property  is  situated, 
a  copy  of  the  order  of  the  County  Board  of  Equalization 
making  said  apportionment.  All  such  property  is  taxable 
upon  said  assessment  at  the  same  rate,  by  the  same  officers, 
and  for  the  same  purposes  as  the  property  of  individuals 
within  such  city,  town,  school,  road,  or  other  taxing 
districts,  respectively,  and  such  taxes,  except  the  taxes  of 
car  companies,  must  be  collected  in  the  same  manner  and 
by  the  same  officers  as  other  taxes  are  collected.  The 
County  Board  of  Equalization  after  making  apportion- 
ment of  the  property  assessed  by  the  State  Board  of  Equal- 
ization to  the  several  city,  town,  school,  road,  or  other 
lesser  taxing  districts,  shall  transmit  a  copy  of  such 
apportionment  relating  to  car  companies  to  the  secretary 
of  the  State  Board  of  Equalization,  in  which  shall  be  set 
forth  the  apportioned  valuation  of  each  car  company  and 
the  rate  of  tax  levy  for  all  purposes  in  each  taxing  district. 

116.  The  Board  of  County  Commissioners  is  the 
County  Board  of  Equalization  and  must  meet  on  the  third 
Monday  in  May  in  each  year  to  examine  the  assessment 
rolls  and  equalize  the  assessment  of  property  in  the  county. 
It  must  continue  in  session  for  that  purpose  from  time 
to  time  until  the  business  of  equalization  is  disposed  of, 
but  not  later  than  the  second  Monday  in  June. 

117.  The  board  has  power,  after  giving  notice  in 
such  manner  as  it  may  by  rule  prescribe,  to  increase  or 

lO-TR 


146 

lower  any  assessment  contained  in  any  assessment  roll, 
so  as  to  equalize  the  assessment  of  the  property  contained 
therein,  and  make  the  assessment  conform  to  the  true 
value  of  such  property  in  money.  Said  board  may  remit 
or  abate  the  taxes  of  any  insane,  idiotic,  infirm,  or  indigent 
person  to  an  amount .  not  exceeding  ten  dollars  for  the 
current  year. 

118.  No  reduction  must  be  made  in  the  valuation 
of  property  unless  the  party  affected  thereby  or  his  agent 
makes  and  files  with  the  board  a  written  application 
therefor,  verified  by  his  oath,  or  shall  appear  before  the 
county  board  of  equalization  and  show  facts  upon  which 
it  is  claimed  such  reduction  should  be  made. 

119.  If  the  board  grants  the  application  or  makes 
any  reduction  applied  for,  it  may  examine  on  oath  the 
person  or  agent  making  the  application  touching  the  value 
of  the  property  of  such  person.  No  reduction  must  be 
made  unliess  such  pers.on  or  the  agent  making  the  applica- 
tion, if  required,  attends  and  answers  all  questions  perti- 
nent to  the  inquiry. 

120.  Upon  the  hearing  of  the  application,  the 
board  may  subpoena  such  witnesses,  and  hear  and»  take 
such  evidence  in  relation  to  the  subject  pending,  as  in  its 
discretion  -it  may  deem  proper. 

121.  During  the  session  of  the  board,  the  assessor 
and  any  deputy  whose  testimony  is  needed  must  be  present, 
and  may  make  any  statement  or  introduce  and  examine 
witnesses  on  questions  before  the  board. 

122.  The  Board  of  County  Commissioners  must  use 
the  assessment  roll  and  all  other  information  it  may  gain 
from  the  records  of  the  county  recorder  or  elsewhere  in 
equalizing  the  assessment  of  the  property  in  the  county, 
and  may  require  the  assessor  to  enter  upon  the  assessment 
roll  any  property  which  has  not  be  assessed;  and  any 
assessment  made  as  prescribed  in  this  section  has  the 
same  force  and  effect  as  if  made  by  the  assessor  before 
the  deliverv  of  the  assessment  roll  to  the  county  treasurer. 


147 

123.  During  the  session  of  the  Board  of  County 
Commissioners,  it  may  direct  the  assessor  to  assess  any 
taxable  property  that  has  escaped  assessment,  or  to  add 
to  the  amount,  number,  or  quantity  of  property  when  a 
false  or  incomplete  list  has  been  rendered,  and  to  make 
and  enter  new  assessments  (at  the  same  time  canceling 
previous  entries)  when  any  assessment  made  by  him  is 
deemed  by  the  board  so  incomplete  as  to  render  doubtful 
the  collection  of  the  tak;  but  the  auditor,  who  is  hereby 
made  the  clerk  of  the  Board  of  Equalization,  must  notify 
all  persons  interested  by  letter  deposited  in  the  postoffice, 
postpaid,  and  addressed  to  the  person  interested,  at  least 
five  days  before  the  action  is  taken,  of  the  day  fixed  for 
the  investigation  of  the  matter. 

124.  The  county  auditor  must  record  in  a  book 
to  be  kept  for  that  purpose  all  changes,  corrections  and 
orders  made  by  the  board;  and  during  its  sessions,  or  as 
soon  as  possible  after  its  adjournment,  must  enter  upon 
the  assessment  roll  all  changes  and  corrections  made  by 
by  the  board. 

LEVY   AND   LIEN   OF   TAXES. 
General  Provisions, 

125.  The  fiscal  year  of  the  State  of  Utah  com- 
mences on  the  first  day  of  December  of  each  year. 

126.  Every  tax  levied  and  assessed  against  real 
estate  is  a  paramount  lien  against  the  property  so  assessed, 
which  lien  is  not  satisfied  nor  removed  until  the  taxes 
are  paid  or  a  valid  decree  entered  foreclosing  a  certificate 
issued  on  the  sale  of  said  property  for  the  non-payment 
of  the  delinquent  tax.  The  lien  for  the  taxes  of  any 
particular  year  is  senior  and  superior  to  the  tax  lien  of 
any  preceding  year. 

127.  Every  tax  upon  personal  property  is  a  lien 
upon  the  real  property  of  the  owner  thereof  from  and 
after  12  o'clock,  noon,  of  the  first  day  in  January  of 
each  year. 


148 

128.  Every  tax  due  upon  improvements  upon  real 
estate  assessed  to  other  than  the  owner  of  the  real  estate 
is  a  paramount  lien  upon  both  land  and  improvements. 

State  Tax. 

129.  Before  the  last  Monday  of  July  of  each 
year,  the  State  Board  of  Equalization  must  determine 
the  rate  of  State  tax  to  be  levied  and  collected  upon  the 
assessed  valuation  of  the  property  of  the  State,  which 
must  be  sufficient  to  raise  the  specified  amount  of 
revenue  required  to  be  raised  by  the  Legislature  for  State 
purposes.  The  board  must  immediately  thereafter  transmit 
to  the  county  auditor  of  each  county  and  to  the  State 
Auditor  a  statement  of  such  rate,  and  upon  its  receipt 
the  county  auditor  must,  in  writing,  notify  the  State 
Board  of  Equalization  of  the  receipt  thereof. 

130.  The  action  of  the  State  Board  of  Equal- 
ization in  fixing  the  rate  of  taxation  for  State  purposes 
is  a  valid  levy  of  the  rate  so  fixed. 

State  School  Tax, 

131.  There  is  hereby  levied  and  directed  to  be 
assessed  and  collected  annually  a  State  tax  of  three  mills 
on  each  dollar  of  valuation  of  the  taxable  property  in  the 
State  for  district  school  purposes;  and  the  assessment  and 
collection  of  said  tax  must  be  performed  in  the  same 
manner  and  at  the  same  time  as  other  state  taxes  are 
assessed  and  collected,  and  shall  be  apportioned  to  the 
several  school  districts  as  provided  by  law. 

State  High  School  Tax. 

132.  That  there  is  hereby  levied  and  directed  to 
be  assessed  and  collected  annually  a  State  tax  of  one- 
half  mill  on  each  dollar  of  valuation  of  the  taxable  property 
in  the  State  for  high  school  purposes;  and  the  assessment 
and  collection  of  said~  tax  must  be  performed  in  the  same 
manner  and  at  the  same  time  as  other  taxes  are  assessed 


149. 

and  collected,  and  shall  be  apportioned  to  the  several 
cities  and  school  districts  maintaining  high  schools  as 
hereinafter  provided. 

133.  Whenever,  under  the  provisions  of  Chapter 
31,  Lav^s  of  1911,  two  or  more  high  school  districts  shall 
be  established  in  any  of  the  counties  of  this  State,  the 
Board  of  Education  of  such  high  school  district  is  author- 
ized to  levy  a  tax  on  all  taxable  property  in  the  district 
for  the  support  of  such  high  school  in  any  amount  not 
exceeding   five   mills   on   the   dollar. 

County  and  County  School. 

134.  The  Board  of  County  Commissioners  of  each 
county  must,  between  the  first  Monday  in  July  and  the 
second  Monday  in  August,  in  each  year,  fix  the  rate  of 
county  taxes,  and  designate  the  number  of  mills  on  each 
dollar  of  valuation  of  property  for  each  fund,  and  must 
levy  taxes  upon  the  taxable  property  of  the  county  not 
exceeding  five  mills  on  the  dollar  for  general  county 
purposes,  and  may  levy  a  tax  not  exceeding  one  mill  on 
the  dollar  additional  for  the  care,  maintenance,  and  relief 
of  the  indigent  sick  and  otherwise  dependent  poor,  and 
not  exceeding  four  mills  on  the  dollar  for  district  school 
purposes. 

135.  The  Board  of  County  Commissioners  shall 
also  at  the  same  time  make  the  levy  for  bounties  provided 
for  in  Section  137  of  this  Act. 


Special  County. 

136.  The  boards  of  county  commissioners  of  the 
several  counties  within  the  State  of  Utah,  or  any  of  them, 
may  and  are  hereby  authorized  and  empowered  to  levy  a 
special  tax  on  taxable  property  within  their  respective 
counties,  for  the  purpose  of  creating  a  fund,  not  exceeding 
five  thousand  dollars  in  any  one  year  in  any  one  county, 
to  be  used  for  collecting,  preparing  and  maintaining  an 
exhibition   of  the   products   and   industries  of  the  county 


150 

at  any  domestic  or  foreign  exposition  or  fair,  for  the 
purpose  of  encouraging  immigration  and  increasing  trade 
in  the  products  of  the  State  of  Utah ;  provided,  the  total 
tax  levied  for  such  purpose  in  any  one  year  shall  not 
exceed  two  cents  on  each  one  hundred  dollars  of  taxable 
property  in  the  county,  according  to  the  assessment  roll. 

Sheep  and  Goats. 

137.  The  Board  of  County  Commissioners  of 
each  county  in  the  State  is  hereby  authorized,  and  it 
shall  at  the  time  of  the  annual  levy  of  taxes,  levy  a  tax 
of  four  mills  on  the  dollar  on  all  sheep  and  goats,  and 
two  mills  on  the  dollar  on  all  horses  and  cattle,  except 
horses  and  cattle  in  incorporated  cities  and  towns,  accord- 
ing to  the  assessed  valuation  of  the  same,  said  tax  to  be 
collected  as  other  taxes  and  paid  into  the  State  Treasury. 
The  State  Treasurer  shall  keep  the  same,  together  with 
the  twenty  thousand  dollars  appropriated  by  Chapter  93, 
Laws  of  1909,  in  a  separate  fund  to  be  known  as  the 
State  Bounty  Fund,  and  pay  the  same  out  upon  the  State 
Auditor's  warrant,   as  provided  by  law. 

City, 

138.  .  During  the  month  of  July  of  each  year,  the 
City  Council,  at  a  regular  meeting  thereof,  shall  by  ordi- 
nance or  resolution,  levy  on  the  real  and  personal  property 
within  the  city  made  taxable  by  law: 

1.  Not  to  exceed  five  mills  on  the  dollar  to  defray 
contingent  expenses; 

2.  Not  to  exceed  ten  mills  on  the  dollar  to  purchase 
water  sources,  streams,  and  the  land  upon  which  said 
streams  are  appropriated,  and  canals;  to  construct  water 
works,  and  to  supply  water  for  irrigation  and  other 
purposes ; 

.     3.     Not  to  exceed  five  mills  on  the  dollar  to  open, 
improve  and  repair  the  streets  and  sidewalks; 


151 

4.  Not  to  exceed  five  mills  on  the  dollar  to  construct 
and  repair  sewers  and  drains; 

5.  Not  to  exceed  ten  mills  on  the  dollar  to  con- 
struct and  maintain  gas  works,  electric  light  works, 
telephone  lines,,  street  railways  or  bath  houses.  Provided, 
that  no  levy  under  either  subdivision  two  or  five  of  this 
section,  shall  be  made  by  the  City  Council  until  after  a 
proposal  to  levy  such  tax  has  been  submitted  to  the 
qualified  taxpayers  of  the  City  at  a  special  election  to 
be  called  for  that  purpose  and  ratified  by  a  majority  of 
those  voting  at  such  election. 

Libraries, 

139.  When  fifty  legal  voters  of  any  city  of  the 
third  class,  or  town,  shall  present  a  petition  to  the  recorder 
or  clerk  of  such  city  or  town,  asking  that  an  annual  tax 
be  levied  for  the  establishment  and  maintenance  of  a  free 
public  library  for  such  city  or  town,  and  shall  specify  in 
their  petition  the  rate  of  taxation,  not  to  exceed  three 
mills  on  the  dollar,  such  recorder  or  clerk  shall,  in 
the  next  legal  notice  of  the  regular  biennial  election 
in  such  city  or  town,  give  notice  that  at  such  election 
each  elector,  who  shall  have  paid  a  property  tax  therein 

in  the  year  next  preceding  election,  may  vote  a 

mill  tax  for  a  free  public  library,  yes,  no,  specifying 
in  such  notice  the  rate  of  taxation  mentioned  in  said 
petition,  and  if  the  majority  of  all  the  votes  cast  in 
such  city  or  town  shall  be  for  taxation  for  a  free  public 
library,  the  tax,  specified  in  such  notice,  shall  be  levied 
and  collected  as  other  general  taxes  of  such  city  or 
town,  and  shall  be  known  as  the  library  fund;  provided, 
that  when  said  fifty  petitioners  shall  ask  that  a  free 
public  gymnasium  be  established  and  maintained  in  con- 
nection with  said  free  library,  and  shall  specify  in  their 
petition  a  request  for  both  library  and  gymnasium,  a 
tax  not  to  exceed  four  mills  on  the  dollar,  such  recorder 
or  clerk  shall   give   notice   as   herein   provided   that   said 

electors  as   provided  may  vote  for  a    mill  tax 

for  a  free  public  library,  and  free  public  gymnasium, 
yes,    no,    specifying   the    rate   of   taxation    mentioned    in 


152 

such  petition  for  library  and  gymnasium,  and  if  the 
majority  of  all  votes  be  for  taxation  for  a  free  public 
library  and  a  free  public  gymnasium,  the  tax,  not  to 
exceed  four  mills  on  the  dollar,  shall  be  levied  and 
collected  annually  as  herein  provided,  and  shall  be  known 
as  the  library  and  gymnasium  funds;  proVided,  that  the 
free  public  library  may  be  established  and  maintained 
with  or  without  the  gymnasium  as  provided  in  this  act; 
provided,  that  such  tax  shall  cease  in  case  the  legal 
voters  of  said  city  or  town  shall  so  determine  by  majority 
vote  at  any  biennial  election  held  therein,  and  the 
corporate  authorities  of  such  cities  of  the  third  class,  and 
of  towns  may  exercise  powers  conferred  upon  cor- 
porate authorities  of  cities  of  the  first  and  of  the 
second  class  under  this  act;  provided  also,  that  such 
library  and  gymnasium  fund  may  be  expended  by  such 
committee  as  may  be  determined.  The  mayor  or  president 
of  such  city  or  town  shall  be  ex  officio  chairman. 


City  School. 

140.  The  board  of  education  shall,  on  or  before  the 
first  day  of  May  of  each  year,  prepare  a  statement  and 
estimate  of  the  amount  necessary  for  the  support  and 
maintenance  of  the  schools  under  its  charge  for  the 
school  year  commencing  on  the  1st  day  of  July  next 
thereafter ;  -also  the  amount  necessary  to  pay  the  interest 
accruing  during  such  year,  and  not  included  in  any 
prior  estimate,  on  bonds  issued  by  said  board;  also 
the  amount  of  sinking  fund  necessary  to  be  collected 
during  such  year  for  the  payment  and  redemption  of 
said  bonds;  and  shall  forthwith  cause  the  same  to  be 
certified  by  the  president  and  clerk  of  said  board  to  the 
officers  charged  with  the  assessment  and  collection  of 
taxes  for  general  county  purposes  in  the  county  in 
which  the  city  is  situated,  and  such  officers,  after  having 
extended  the  valuation  of  property  on  the  assessment 
rolls,  shall  levy  such  per  cent  as  shall,  as  nearly  as 
may  be,  raise  the  amount  required  by  the  board,  which 
levy  shall  be  uniform  on  all  property  within  the  said 
city  as  returned  on  the  assessment  roll;  and  the  said 
county   officers   are    hereby    authorized    and    required   to 


153 

place  the  same  on  the  tax  roll.  Said  taxes  shall  be 
collected  by  the  county  treasurer  as  other  taxes  are 
collected,  but  without  additional  compensation  for 
assessing  and  collecting,  and  he  shall  pay  to  the  treasurer 
of  said  board,  promptly  as  collected,  who  shall  hold  the 
same  subject  to  the  order  of  the  board  of  education; 
provided,  that  the  tax  for  the  support  and  maintenance 
of  such  schools  shall  not  exceed  in  any  one  year  six  and 
one-half  mills  on  the  dollar  upon  all  taxable  property  of 
said  city,  of  which  at  least '  three  mills  shall  not  be 
used  otherwise  than  for  the  payment  of  teachers,  and 
shall  not  exceed  one  and  one-half  mills  additional  on 
the  dollar  in  one  year,  to  be  used  exclusively  for  the 
purchase  of  school  sites  and  the  erection  of  school  build- 
ings. 

District  School. 

141.  The  school  district  board  shall  have  general 
charge,  direction,  and  management  of  the  schools  of  the 
district,  and  the  care,  custody,  and  control  of  all  prop- 
erty belonging  to  the  district,  subject  to  the  provisions  of 
the  law.  It  may  annually  order  to  be  raised  on  the 
taxable  property  of  the  district,  not  to  exceed  one  per 
cent  for  the  support  of  schools,  to  defray  current  expenses 
and  to  purchase  text  books.  It  shall  have  the  power  to 
establish  and  maintain  school  libraries  which,  in  districts 
that  have  no  free  library  or  reading  room,  may  be  opened 
to  the  public  under  such  regulations  as  the  board  may 
provide.  For  the  purpose  of  purchasing  books  and 
magazines  for  these  school  libraries,  the  board  shall  set 
aside  annually  from  the  tax  herein  provided,  an  amount 
equal  to  fifteen  cents  per  capita  for  each  child  in  the 
district  between  the  ages  of  six  and  eighteen  years, 
inclusive,  the  computation  being  based  on  the  school 
census  at  the  time  when  the  tax  is  levied;  provided, 
that  the  library  fund  thus  created  shall  be  expended  under 
the  direction  of  the  State  Board  of  Education  for  such 
books  and  magazines  as  they  shall  recommend  and  under 
such  regulations  as  they  may  prescribe;  provided,  further, 
that  this  Act  shall  apply  to  all  school  districts  outside  of 
cities  of  the  first  and  second  class. 


154 

Towns. 

142.  The  Board  of  Trustees  in  each  town  shall 
have  power  to  levy  an  annual  tax  for  general  corporation 
purposes  on  all  such  property  as  shall  be  subject  to  county 
and  state  taxes  and  such  tax  shall  when  so  levied,  con- 
stitute a  lien  on  all  such  property  and  shall  be  collected 
as  county  and  state  taxes  are  collected;  provided  that  all 
taxes  for  such  purposes  in  one  year  shall  not  exceed  one 
per  cent  on  the  assessed  valuation  of  the  property  so 
assessed,  unless  two-thirds  of  the  electors  voting  at  a 
special  election  called  for  that  purpose  shall  vote  a  larger 
per  cent  to  be  levied,  but  in  no  case  shall  said  tax  exceed, 
nor  electors  be  allowed  to  levy,  more  than  one  and  one- 
half  per  cent  of  the  assessed  valuation  aforesaid  in  one 
year. 


Special  Road  Tax, 

143.  Whenever  the  State  Road  Commission  shall 
decide  to  improve  a  portion  of  a  road  in  any  precinct 
of  a  county,  the  County  Commissioners  shall  levy  a 
special  road  tax,  not  to  exceed  five  mills,  except  when 
authorized  by  a  majority  of  the  property  owners,  on 
all  assessable  property  within  said  precinct,  said  tax  to 
be  collected  at  the  same  time  and  in  the  same  manner 
as  other  taxes;  provided,  that  this  tax  shall  not  be  used 
in  lieu  of  the  amount  to  be  appropriated  by  the  county, 
as  provided  in  Chapter  119,  Session  Laws  of  Utah,  1909, 
as  amended  by  section  6,  Chapter  42,  Session  Laws  of 
Utah,  1911,  but  shall  be  used  in  connection  with  the 
county  appropriation  and  the  State  Road  Building  Fund. 

144.  The  city  council  of  each  city  and  the  board 
of  trustees  of  each  town  shall,  during  the  month  of 
July  in  each  year,  after  determining  the  rate  of  the 
general  city  or  town  tax,  certify  the  rate  and  levy  to 
the  county  auditor  of  the  county  in  which  such  city  or 
town  is  situate. 


155 

COLLECTION. 

Car  Companies. 

145.  The  Secretary  of  the  State  Board  of  Equal- 
ization is  hereby  made  the  collector  of  taxes  due  from 
car  companies.  He  shall,  upon  receipt  of  the  apportion- 
ment of  the  property  of  car  companies  from  the  County 
Board  of  Equalization,  compute  taxes  due  from  each 
company,  and  proceed  to  collect  the  taxes  from  said  car 
companies,  and  shall  furnish  each  company  by  mail, 
postage  prepaid,  a  notice  of  the  amount  of  tax  assessed 
against  it,  when  and  where  payable,  and  that  such  tax 
is  delinquent  on  the  first  day  of  December  next  there- 
after. On  the  15th  day  of  December  in  each  year,  the 
collector  of  taxes  from  car  companies  shall  remit  to  the 
State  Treasurer  the  taxes  collected  from  car  companies 
due  the  State,  and  to  each  county  treasurer  all  taxes 
collected  from  car  companies  due  to  his  county  and  to  the 
several  taxing  districts  therein,  together  with  a  list  of  the 
said  districts  and  the  amounts  due  to  each. 

146.  The  annual  salary  of  the  collector  of  taxes 
due  from  car  companies  is  hereby  fixed  at  three  hundred 
dollars. 


County  Auditor's  Duties. 

147.  The  County  Auditor,  immediately  upon  com- 
pletion of  the  work  of  the  County  Board  of  Equalization, 
must  proceed  to  add  up  the  valuations  and  enter  the  total 
valuation  of  each  kind  of  property,  and  the  total  valuation 
of  all  property  on  the  assessment  roll. 

148.  The  general  city  and  town  tax  of  each  city 
and  incorporated  town  shall  be  extended  on  the  general 
roll  by  the  county  auditor,  in  a  separate  column,  at  the 
rate  certified  by  the  city  council  or  town  board  of  trustees, 
at  the  time  the  state  and  county  taxes  are  extended,  and 
the  whole  tax  shall  be  carried  into  a  column  of  aggregates, 
and  shall  be  collected  by  the  county  treasurer  at  the  times 


156 

and  in  the  manner  provided  by  law  for  collecting  state 
and  county  taxes. 

149.  The  County  Auditor  must,  on  or  before  the 
first  Monday  in  July  of  each  year,  prepare  from  the  assess- 
ment roll  of  each  year,  as  corrected  by  the  County  Board 
of  Equalization,  and  transmit  to  the  State  Board  of 
Equalization,  upon  blanks  provided  by  it,  a  statement 
showing : 

1.  The  total  value  of  the  several  classes  of  property, 
shovm  separately,  as  classified  by  said  assessment  roll; 

2.  The  total  number  of  acres  of  each  class  of  real 
estate  assessed  as  acreage  (not  including  mining  property) 
and  its  value; 

3.  The  total  number  of  acres  assessed  as  mining 
property ; 

4.  The  number  of  horses  and  mules,  as  classified; 

5.  The  number  of  cattle  as  classified ; 

6.  The  number  of  sheep  and  goats  as  classified ; 

7.  The  number  of  swine; 

8.  The  number  of  colonies  of  bees; 

9.  Merchandise  and   trade  fixtures; 

10.  Machinery,  implements,  tools  and  vehicles; 

11.  Automobiles  and  motorcycles; 

12.  Money  and  solvent  credits; 

13.  Banks  and  loan  and  trust  companies; 

14.  Furniture  and  household  effects; 

15.  Mines  and  mining  claims  by  name,  mining  dis- 
trict, number  of  acres  and  tax  number. 

16.  Improvements  and  machinery  on  or  belonging 
to  mining  property; 

17.  Interest  in  State  lands; 

18.  Personal  property  not  otherwise  enumerated; 


157 

19.  Property  assessed  by  the  State  Board  of 
Equalization ; 

20.  The  total  value  of  all  property; 

21.  The  amount  of  taxes  remitted  or  abated; 

22.  Any  further  information  requested  by  the  State 
Board  of  Equalization. 

150.  The  county  auditor  must,  as  soon  as  such  state- 
ment is  prepared,  and  not  later  than  the  first  Monday 
in  July,  transmit  the  same  to  the  State  Board  of  Equal- 
ization. 

151.  As  soon  as  the  county  auditor  receives  from 
the  State  Board  of  Equalization  a  statement  of  the  changes 
made  by  the  board  in  the  assessment  roll  of  the  county, 
or  of  any  assessments  contained  therein,  he  must  make 
the  corresponding  changes  in  the  assessment  roll,  count- 
ing any  fractional  sum  when  fifty  cents  or  more  as  one 
dollar,  and  omitting  it  when  less  than  fifty  cents,  so 
that  the  value  of  any  separate  assessment  shall  contain 
no  fractions  of  a  dollar ;  but  he  must  in  all  cases  disregard 
any  action  of  the  board  of  county  commissioners  which  is 
prohibited  by  Section  21. 

152.  The  county  auditor  must  then  compute  and 
enter  in  a  separate  money  column  in  the  assessment 
roll  the  aggregate  sum  in  dollars  and  cents,  rejecting  the 
fractions  of  a  cent,  to  be  paid  as  taxes  on  the  property 
therein  enumerated;  provided,  that  taxes  levied  only  on 
a  certain  kind  or  class  of  property  for  a  special  purpose 
other  than  for  State,  county,  city,  town,  and  school  pur- 
poses, etc.,  shall  be  separately  set  out,  and  shall  foot  up 
the  column  showing  the  total  amount  of  such  taxes,  and  the 
column  of  total  value  of  property  in  the  county,  as  cor- 
rected by  the  State  Board  of  Equalization. 

153.  On  or  before  the  first  Monday  in  September 
he  must  deliver  the  corrected  assessment  roll  to, the  county 
treasurer. 


158 

154.  On  delivering  the  assessment  roll  to  the  county 
treasurer,  the  county  auditor  must  charge  the  treasurer 
with  the  full  amount  of  taxes  levied. 

155.  The'  county  auditor  must,  on  or  before  the  third 
Monday  in  September  of  each  year,  prepare  from  the 
assessment  roll,  as  corrected  by  the  Board  of  County 
Commissioners  and  by  the  State  Board  of  Equalization, 
and  forward  to  the  State  Auditor,  a  statement  made  upon 
blanks  provided  by  him,  showing  in  separate  columns: 

1.  The  total  value  of  all  property; 

2.  The  value  of  real  estate,  including  patented  min- 
ing claims,  stated  separately; 

3.  The  value  of  improvements  thereon; 

4.  The  value  of  personal  property,  exclusive  of 
money ; 

5.  The  amount  of  money; 

6.  The  number  of  acres  of  land  and  the  number  of 
patented  mining  claims,  stated  separately; 

7.  The  total  amount  of  taxes  remitted  by  the  Board 
of  County  Commissioners; 

8.  The  State's  share  of  such  taxes  remitted; 

9.  The  county's  share  of  such  taxes  remitted; 

10.  All  county,  city,  town,  school,  or  other  taxing 
district  tax  levies; 

11.  Such  other  information  as  the  State  Auditor 
may  request. 

156.  The  county  auditor,  on  or  before  the  third 
Monday  of  September  of  each  year,  shall  prepare  and 
mail  to  the  State  Board  of  Equalization  a  statement  made 
upon  blanks  provided  by  said  Board,  showing  the  amount 
and  value  of'  all  property  in  the  State  as  classified  by  the 
county  assessment  rolls,  and  the  value  of  each  class. 


159 

157.  The  county  auditor,  if  the  assessment  roll  or 
the  delinquent  tax  list  is  transferred  from  one  treasurer 
to  another,  must  credit  the  one  and  charge  the  other  with 
the  amount  then  outstanding  on  the  tax  list. 

County  Treasurer' s  Duties, 

158.  On  receipt  of  the  assessment  roll,  the  county 
treasurer  shall  index  in  one  or  more  indexes  (if  more 
than  one,  the  alphabet  shall  be  so  divided  that  no  names 
shall  appear  in  more  than  one  place  in  such  indexes 
unless  for  lack  of  space  transferred  to  some  other  place 
to  be  referred  to),  the  names  of  all  property  owners 
shown  by  the  assessment  roll;  and  shall,  opposite  each 
name  in  the  index,  refer  by  number  of  assessment  roll 
(if  there  be  more  than  one)  and  by  page  and  line  to  all 
pieces  of  property  standing  upon  the  assessment  roll  in 
such  names.  He  shall  proceed  to  collect  taxes,  and  shall 
furnish  to  each  taxpayer,  except  car  companies,  whose 
address  appears  on  the  assessment  roll,  by  mail,  postage 
prepaid,  a  notice  of  the  amount  of  tax  assessed  against 
him  upon  all  property,  which  notice  shall  set  out  the 
aggregate  amount  of  taxes  to  be  paid  for  State,  county, 
city,  town  and  school  purposes,  etc.,  and  shall  set  out 
separately  all  taxes  levied  only  on  a  certain  kind  or  class 
of  property  for  a  special  purpose  or  purposes  other  than 
for  State,  county,  city,  town  and  school  purposes,  etc., 
and  shall  have  printed  or  stamped  thereon  the  rate  of 
taxation  for  each  purpose  for  which  taxes  have  been 
levied,  when  and  where  payable,  and  that  such  tax  is 
delinquent  at  twelve  o'clock  noon  on  the  Saturday  next 
prior  to  the  first  Monday  in  December  thereafter. 

159.  At  the  time  of  mailing  the  notice  provided  for 
in  Section  158,  the  treasurer  shall  indicate  by  a  check 
mark,  in  a  column  provided  for  that  purpose  on  the 
assessment  roll,  the  fact  that  such  notice  has  been  duly 
mailed,  and  the  presence  of  such  check  mark  opposite  the 
name  of  the  taxpayer  in  such  column  shall  be  prima 
facie  evidence  of  the  mailing  of  such  notice. 

160.  All  general  city  or  town  taxes  levied  and 
assessed   under   the   provisions   of  this   Act   shall   become 


160 

due  and  delinquent,  and  shall  attach  to  and  become  a  lien 
on  the  real  and  personal  property  assessed,  at  the  same 
time  as  State  and  county  taxes;  and  all  the  provisions  of 
this  Act  in  aid  of  assessing  and  collecting  State  and  county 
taxes  are  hereby  made  applicable  to  the  assessment  and 
collection  of  such  city  and  town  taxes. 

161.  The  county  treasurer  must  mark  the  date  of  the 
payment  of  any  tax  on  the  assessment  roll  opposite  the 
name  of  the  person  paying.  The  State  Treasurer  must 
mark  the  date  of  the  payment  of  any  tax  paid  him  by 
car  companies  in  the  record  kept  by  him. 

162.  At  any  time  after  taxes  become  due,  and  before 
any  cost,  interest,  or  penalty  has  attached,  the  owner  of 
an  undivided  interest  in  any  real  property  may  pay  to  the 
county  treasurer  his  pro  rata  share  of  the  entire  tax 
assessed  against  said  property. 

163.  If  such  payment  be  not  made  until  after  cost, 
interest,  or  penalties  have  attached,  then  such  payment 
must  include  the  proportionate  amount  of  such  cost,  in- 
terest and  penalties. 

164.  The  county  treasurer  must  give  a  receipt  to  the 
person  paying  any  taxes,  specifying  therein  the  amount 
of  the  assessment,  the  description  and  kind  of  property 
assessed,  and  the  aggregate  amount  of  taxes  paid;  pro- 
vided, that  taxes  levied  only  on  a  certain  kind  or  class  of 
property  for  special  purposes  other  than  for  State,  county, 
city,  town,  and  school  purposes,  etc.,  shall  be  separately 
set  out;  provided  further,  that  upon  said  receipt  shall 
be  printed  the  rate  of  taxation  for  each  purpose  for 
which  taxes  have  been  levied.  County  warrants  shall  be 
taken  in  payment  of  county  taxes,  city  warrants  in  pay- 
ment of  city  taxes,  and  school  district  warrants  in  pay- 
ment of  district  school  taxes,  provided  that  State  school 
taxes,  county  school  taxes,  and  sinking  funds  shall  be 
paid  in  cash. 

165.  The  district  court  must  require  every  admin- 
istrator or  executor  to  pay  out  of  the  funds  of  the  estate 
all  taxes  due  from  such  estate;  and  no  order  or  decree 


161 

for  the  distribution  of  any  property  of  any  decedent 
among  the  heirs  or  devisees  shall  be  made  until  all  taxes 
against  the  estate  are  paid. 

166.  The  tax  on  mines  shall  be  collected  and  the 
payment  thereof  enforced  in  the  manner  provided  for  the 
collection  and  enforcement  of  other  taxes;  and  every 
tax  is  a  paramount  lien  upon  the  mines  or  mining  claims 
upon  which  such  mining  machinery  and  improvements 
are  erected,  and  from  which  the  ores  and  minerals  are 
extracted,  and  the  sale  thereof  for  delinquent  taxes  may 
be  made  as  provided  for  the  sale  of  real  estate  for 
delinquent  taxes;  provided,  that  the  tax  on  improvements 
located  on  mining  claims,  the  title  to  which  is  in  the 
United  States,  shall  be  collected  as  provided  in  this  Act 
for  the  collection  of  taxes  on  personal  property. 

167.  On  the  first  Monday  of  March,  of  June,  and  of 
September,  and  the  second  Monday  of  December,  the 
county  treasurer  must  settle  with  the  Board  of  County 
Commissioners  for  all  moneys  collected  by  him,  and  on  said 
day  must  deliver  to  and  file  in  the  office  of  the  County 
Auditor  a  statement  under  oath  showing : 

1.  An  account  of  all  transactions  and  receipts  since 
his  last  settlement; 

2.  That  all  money  collected  by  him  is  in  the  county 
treasury. 

168.  All  taxes  provided  for  in  this  Act  shall  be  due 
on  the  first  Monday  in  September,  and  are  delinquent 
at  twelve  o'clock  noon  on  the  Saturday  next  prior  to  the 
first  Monday  in  December  in  each  year. 

169.  All  taxes  due  and  unpaid  at  twelve  o'clock  noon 
on  the  Saturday  next  prior  to  the  first  Monday  in  Decem- 
ber in  each  year  shall  be  subject  to  a  penalty  of  ten  per 
cent  of  the  amount  of  such  taxes  where  the  amount  of 
taxes  on  any  assessment  amounts  to  ten  dollars  or  more; 
where  the  taxes  amount  to  less  than  ten  dollars,  the 
penalty  shall   be  one   dollar. 


11-TR 


162 

170.  When  the  treasurer  discovers  that  any  property 
has  been  assessed  more  than  once  for  the  same  year,  he 
must  collect  only  the  tax  justly  due  and  make  a  return  of 
the  facts,  under  affidavit,  to  the  county  auditor. 

171.  It  shall  be  the  duty  of  the  county  treasurer 
at  twelve  o'clock  noon  on  the  Saturday  next  prior  to  the 
first  Monday  in  Dcember  in  each  year  to  close  his  office  • 
for  the  receipt  of  taxes;  to  correct  his  delinquent  list  by 
amending  the  same  in  conformity  with  the  facts,  and  with 
all  convenient  dispatch  to  deliver  the  same  to  the  pub- 
lisher selected  by  the  board  of  county  commissioners 
to  publish  the  same. 

172.  The  State  Auditor  may,  at  any  time  after  a 
delinquent  list  has  been  delivered  to  the  county  treasurer, 
direct  such  treasurer  not  to  proceed  in  the  collection  of 
any  tax  on  the  said  list  amounting  to  three  hundred  dollars 
or  more,  further  than  to  offer  for  sale  but  once  any 
property  upon  which  such  tax  is  a  lien.  Upon  such 
direction,  the  county  treasurer,  after  offering  the  property 
for  sale  once,  and  there  being  no  purchaser  in  this 
State,  must  make  out  and  deliver  to  the  State  Auditor 
a  certified  copy  of  the  entries  upon  the  delinquent 
list  relative  to  such  tax;  and  the  county  treasurer,  or 
State  Auditor  in  case  the  county  treasurer  refuses  or 
neglects  fpr  fifteen  days  after  being  directed  to  bring  suit 
for  collection  by  the  State  Auditor,  may  proceed  by  civil 
action  in  the  proper  court  in  the  name  of  the  State 
to  collect  such  tax  and  costs. 

173.  In  such  action,  a  complaint  in  the  following 
form  is  sufficient: 

•(Title  of   Court.) 

The  State  of  Utah,  plaintiff,  vs.  (naming  the  defend- 
ant), defendant. 

The   plaintiff   avers   that   in   the   year    19 there 

was    regularly   levied    against   property   assessed   to    said 
defendant   in   said  county.   State,   city,   town,   school   and 

county  taxes  in  the  sum  of  $ ;  that  interest, 

penalty  and  costs  on  said  amount  is  $ ;  that 


163 

no   part   of   said    taxes,    penalty,    interest   nor   costs    has 
been  paid. 

The  plaintiff  demands  judgment  for  said  several 
sums  and  for  costs  of  suit,  and  prays  that  a  writ  of 
attachment  may  issue  in  form  prescribed  by  law. 

(Signed  by  the  county  treasurer  or  State  Auditor, 
or  his  attorney.) 

174.  On  the  filing  of  such  complaint,  the  clerk  must 
issue  a  summons  and  a  writ  of  attachment  prayed  for, 
and  such  proceedings  shall  be  had  thereunder  as  under 
writs  of  attachment  issued  in  civil  actions.  If,  in  such 
action,  the  plaintiff  recovers  judgment,  there  shall  be 
included  in  such  judgment  an  attorney's  fee  of  ten 
per  cent  on  the  amount  of  the  judgment.  In  such  action, 
a  certified  copy  mentioned  in  Section  172,  made  by  the 
treasurer  and  delivered  to  the  State  Auditor,  is  prima  facie 
evidence  that  the  person  against  whose  property  the  tax 
was  levied  is  indebted  to  the  State  of  Utah  in  the  amount 
of  such  tax,  interest  and  costs.  In  case  of  payment, 
after  suit  as  above  mentioned  shall  have  been  coni- 
menced  or  after  the  recovery  of  judgment,  such  payment 
must  be  made  to  the  county  treasurer  of  the  .county  in 
which  such  taxes  are  due,  whereupon  the  treasurer, 
after  distributing  to  the  several  funds  of  the  county  the 
portions  belonging  to  them,  and  paying  to  the  State 
Auditor  or  his  attorney  the  portion  received  as  attorney's 
fee  and  other  costs,  must  pay  the  remainder  to  the  State 
Treasurer  at  the  times  and  in  the  manner  prescribed  by 
law  for  the  payment  of  other  State  taxes. 

175.  No  injunction  shall  be  granted  by  any  court 
or  judge  to  restrain  the  collection  of  any  tax  or  any 
part  thereof,  nor  to  restrain  the  sale  of  any  property  for 
the  non-payment  of  the  tax,  except  where  the  tax  or  some 
part  thereof  sought  to  be  enjoined,  is  illegal,  or  is  not 
authorized  by  law,  or  the  property  is  exempt  from 
taxation.  If  the  payment  of  a  part  of  a  tax  is  sought 
to  be  enjoined,  the  other  part  must  be  paid  or  tendered 
before  action  can  be  commenced. 


164 

176.  In  all  cases  of  levy  of  taxes,  licenses,  or  other 
demands  for  public  revenue  v^hich  is  deemed  unlawful 
by  the  party  whose  property  is  thus  taxed,  or  from  whom 
such  tax  or  license  is  demanded  or  enforced,  such  party 
may  pay  under  protest  such  tax  or  license,  or  any  part 
thereof  deemed  unlawful,  to  the  officers  designated  and 
authorized  by  law  to  collect  the  same;  and  thereupon  the 
party  so  paying  or  his  legal  representative  may  bring 
an  action  in  any  court  of  competent  jurisdiction  against 
the  officer  to  whom  said  tax  or  license  was  paid,  or 
against  the  county  or  municipality  on  whose  behalf  the 
same  was  collected,  to  recover  said  tax  or  license  or  any 
portion  thereof  paid  under  protest. 

177.  In  case  it  be  determined  in  such  action  that  said 
tax  or  license,  or  any  portion  thereof,  so  paid  under 
protest  was  unlawfully  collected,  judgment  for  recovery 
thereof  and  lawful  interest  thereon,  together  with  costs 
of  action,  shall  be  entered  in  favor  of  the  plaintiff,  and 
upon  being  presented  with  a  duly  authenticated  copy 
of  such  judgment,  the  proper  officer  or  officers  of  the 
county  or  municipality  whose  officers  collected  or  received 
such  tax  or  license  shall  audit  and  allow  such  judgment, 
and  cause  a  warrant  to  be  drawn  on  the  treasurer  of  that 
county  or*  municipality  for  the  amount  recovered  by  said 
judgment  in  favor  of  the  legal  holder  thereof;  and  when 
any  such  judgment  has  been  or  may  hereafter  be  obtained 
against  a  county,  each  taxing  fund  that  has  participated 
in  the  tax  for  which  such  judgment  was  rendered  shall 
be  liable  to  the  county  for  its  proportionate  share  of 
such  judgment,  including  legal  interest  thereon;  and  the 
proper  officers  shall,  upon  demand  of  such  county,  cause  a 
warrant  to  be  drawn  upon  the  treasurer  of  such  funds 
for  the  amount  due  under  the  provisions  hereof. 

178.  The  remedy  hereby  provided  shall  supersede 
the  remedy  of  injunction  and  all  other  remedies  which 
might  be  invoked  to  prevent  the  collection  of  taxes  or 
licenses  alleged  to  be  irregularly  levied  or  demanded, 
except  in  unusual  cases  where  the  remedy  hereby  pro- 
vided is  deemed  by  the  court  to  be  inadequate. 


165 

179.  The  treasurer  may  collect  the  taxes  delinquent 
on  personal  property,  except  when  the  real  estate  is  liable 
therefor,  by  seizure  and  sale  of  any  personal  property 
owned  by  the  delinquent. 

180.  The  sale  must  be  at  public  auction,  and  of  a 
sufficient  amount  of  property  to  pay  the  taxes  and  costs, 
and  when  practicable  must  be  made  in  the  justice's  precinct 
where   seized. 

181.  The  sale  must  be  made  after  one  week's  notice 
of  the  time  and  place  thereof,  given  by  publication  in  a 
newspaper  published  in  the  county,  or  by  posting  in 
three  public  places  in  the  county. 

182.  For  seizing  or  selling  personal  property,  the 
treasurer  may  charge  in  each  case  the  sum  of  three  dol- 
lars for  the  use  of  the  county,  and  actual  and  necessary 
expenses  for  travel,  seizing,  handling,  keeping  or  caring 
for  property  so  seized  or  sold. 

183.  On  payment  of  the  price  bid  for  any  personal 
property  sold,  the  delivery  thereof,  with  a  bill  of  sale, 
vests  the  title  thereto  in  the  purchaser. 

184.  All  excess  over  the  taxes  and  costs  of  the 
proceeds  of  any  such  sale  must  be  returned  to  the  owner 
of  the  property  sold,  and  until  claimed  must  be  deposited 
in  the  county  treasury,  subject  to  the  order  of  the  owner, 
or  his  heirs,  or  assigns. 

185.  The  unsold  portion  of  any  property  may  be 
left  at  the  place  of  sale  at  the  risk  of  the  owner. 

186.  At  the  time  of  making  the  assessment,  or  at 
any  time  thereafter,  the  assessor  may  collect  the  taxes 
by  seizure  and  sale  of  any  personal  property  owned  by 
the  person  against  whom  the  tax  is  assessed,  in  case  he 
has  cause  to  believe  that  the  owner  of  such  personal 
property  is  likely  to  avoid  payment  of  the  tax  by  dis- 
posing of  the  property  or  by  removal  thereof  from  the 
county,    unless    such    person    gives    security    to    pay    the 


166 

same  when  due.     The  provisions  of  Sections  174  and  179 
apply  to  such  seizure  and  sale. 

187.  The  assessor  shall  be  governed,  as  to  the  amount 
of  taxes  to  be  by  him  collected  on  such  personal  property, 
by  the  State,  city,  town,  school  and  county  rate  of  the 
previous  year. 

188.  When  the  rate  is  fixed  for  the  year  in  which 
such  collection  is  made  then,  if  a  sum  in  excess  of  the  rate 
has  been  collected,  such  excess  shall  not  be  apportioned 
to  the  State,  but  the  whole  thereof  shall  remain  in  the 
county  treasury,  and  must  be  repaid  by  the  county  treas- 
urer to  the  person  from  whom  the  collection  was  made  or 
to  his  assignee  on  demand  therefor. 

189.  If  a  sum  less  than  the  rate  fixed  has  been 
collected,  the  deficiency  must  be  collected  as  other  taxes 
on  personal  property  are  collected. 

190.  The  assessor  must  note  on  the  assessment  roll 
opposite  the  names  of  each  person,  from  whom  taxes  have 
been  collected  by  him,  the  amount  thereof. 

191.  As  soon  as  the  rate  of  taxation  for  the  year  is 
fixed,  the  county  auditor  must  note,  in  connection  with 
the  entry  'made  under  the  provisions  of  the  preceding 
section,  the  amount  of  the  excess  or  deficiency. 

192.  On  the  first  Monday  in  December  in  each  year, 
the  office  of  the  county  treasurer  shall  reopen  for  the 
collection  of  taxes,  and  all  taxes  collected  from  and  after 
that  date  shall  include  the  penalty  provided  by  Section  169, 
and  shall  also  include  a  publication  fee  of  twenty-five 
cents  for  each  description. 

193.  Delinquent  taxes,  penalty  and  costs  shall  draw 
interest  at  the  rate  of  one  per  cent  per  month  from  and 
after  twelve  o'clock  noon  of  the  Saturday  next  prior  to 
the  first  Monday  in  December  in  each  year.  In  computing 
interest,  either  on  account  of  tender  of  payment  or  in 
case   of   redemption   from   tax   sale,   no   account   shall   be 


167 

taken  of  any  period  of  time  less   than   a   full  month   or 
multiples   thereof   after   the   date  of  delinquency. 

194.  If  any  person  removes  from  one  county  to 
another,  after  being  assessed  on  personal  property,  the 
treasurer  of  the  county  in  which  he  was  assessed  may  sue 
for  and  collect  the  same  in  the  name  of  the  county  where 
the  assessment  was  made. 

195.  On  the  trial,  a  certified  copy  of  the  assessment 
signed  by  the  county  auditor  of  the  county  where  the  same 
was  made,  with  the  affidavit  of  the  treasurer  thereto  at- 
tached, that  the  tax  has  not  been  paid,  describing  it  as  on 
the  assessment  roll,  or  delinquent  list,  is  prima  facie  evi- 
dence that  such  tax  and  the  interest  are  due,  and  entitles 
him  to  judgment,  unless  the  defendant  proves  that  the 
tax  was  paid. 

196.  The  treasurer  and  the  county  auditor  must 
allow  the  expenses  of  collecting  such  tax,  and  permit  a 
deduction  thereof  from  the  amount  collected,  if  they  do 
not  exceed  one-third  of  the  amount  of  the  tax  collected. 


PUBLICATION. 

197.  It  shall  be  the  duty  of  the  county  commis- 
sioners, annually  on  or  before  the  first  Monday  in  Novem- 
ber in  each  year,  to  advertise  for  bids  for  the  publication 
of  the  delinquent  tax  list  in  a  newspaper  having  a 
general  circulation  in  the  county.  Such  advertisement 
may  be  by  notice  printed  in  one  or  more  newspapers 
published  within  the  county,  or  by  posting  the  same  at 
the  Court  House  door,  as  the  commissioners  may  deter- 
mine. 

198.  All  bids  must  be  in  writing  and  subscribed 
by  the  party  offering  the  bid,  and  must  be  filed  as  a 
part  of  the  records  of  the  county  commissioners'  office. 
Each  bid  shall  propose  to  publish  the  entire  delinquent  list 
for  the  time  provided  by  law  at  so  much  a  description. 
The  county  commissioners  in  awarding  the  contract  for  the 


168 

publication  of  the  delinquent  tax  list  shall  award  the  same 
to  the  lowest  bidder. 

199.  On  or  before  the  second  Monday  of  December 
of  each  year,  the  county  treasurer  must,  under  the  direc- 
tion of  the  county  commissioners,  publish  the  delinquent 
list,  which  must  contain'  the  names  of  the  owners,  when 
known,  and  a  description  of  the  property  delinquent  or 
subject  to  a  lien  of  taxes,  classified  in  towns  and  cities 
by  addition,  subdivision,  plat,  block  and  lot,  and  other 
lands  by  range,  township  and  section,  or  legal  subdivision 
thereof,  with  the  amount  of  taxes  due,  exclusive  of  penalty 
and  costs.  The  county  treasurer  must  publish  with  such  a 
list  a  notice  that  unless  the  delinquent  taxes,  together 
with  the  penalty  and  cost  of  publication,  are  paid  before 
the  fourth  Monday  of  December,  the  real  property  upon 
which  such  taxes  are  a  lien  will  be  sold  for  taxes,  penalty 
and  costs,  beginning  on  said  date,  at  the  front  door  of  the 
County  Court  House.  Publication  must  be  commenced 
on  the  second  Monday  of  December,  if  published  in  a  daily 
newspaper,  and  shall  be  published  in  each  issue  thereof  for 
the  full  period  of  ten  days ;  if  published  in  a  weekly  news- 
paper, the  publication  must  be  commenced  in  the  first  issue 
of  said  newspaper  after  the  second  Monday  of  December, 
and  shall  be  published  in  two  consecutive  issues  of  said 
newspaper. 

200.  In  case  the  taxes  on  any  personal  property  are 
a  lien  against  the  real  estate  of  the  owner,  then  the  pub- 
lication of  the  delinquent  taxes  against  such  personal 
property  shall  be  published  in  connection  with  that  of 
the  real  estate  on  which  they  are  a  lien,  and  the  real  estate 
shall  be  sold  for  the  total  amount  of  the  taxes  on  both 
the  real  and  personal  property. 

201.  If  the  owner  of  personal  property  against  which 
there  are  delinquent  taxes  has  no  real  estate  against 
which  delinquent  personal  property  taxes  are  a  lien,  then 
no  publication  of  such  delinquent  personal  property  taxes 
shall  be  made. 

202.  Within  ten  days  after  the  date  of  the  last  publi- 
cation of  the  delinquent  tax  list,  the  publisher,  managing 


169 

clerk,  or  other  responsible  official  of  the  newspaper  mak- 
ing such  publication,  shall  file  in  the  office  of  the  county 
treasurer  a  true  copy  of  said  delinquent  list  as  published 
in  said  newspaper,  each  page  of  said  copy  to  be  sub- 
stantially mounted  on  heavy  cardboard  and  the  sheets  so 
fastened  together  as  to  provide  for  and  secure  their  acces- 
sibility, and  attach  thereto  his  affidavit  to  the  effect  that 
said  delinquent  list,  and  the  whole  thereof,  was  duly  pub- 
lished in  each  and  every  issue  of  said  newspaper  on  the 
dates  specified  in  said  affidavit.  This  affidavit  may  be 
sworn  to  before  any  person  authorized  to  administer  oaths 
in  the  State  of  Utah,  and  when  so  attached  to  a  copy  of 
said  delinquent  list,  as  herein  provided,  shall  be  prima 
facie  evidence  of  the  facts  therein  recited. 

203.  On  or  before  the  second  Monday  in  December 
in  each  year  the  collector  of  taxes  from  car  companies 
shall  publish,  in  three  newspapers  having  a  general  circu- 
lation in  the  State,  no  two  of  which  shall  be  published 
in  the  same  county,  the  list  of  the  car  companies  de- 
linquent for  taxes,  which  must  contain  the  names  of  the 
owners,  when  known,  and  a  description  of  the  property 
delinquent  or  subject  to  a  lien  of  taxes.  The  collector  of 
taxes  from  car  companies  shall  publish  with  such  list  a 
notice  that  unless  the  delinquent  taxes,  together  with  the 
penalty  and  costs  of  publication,  are  paid  before  the  fourth 
Monday  of  December  next  thereafter,  the  property  upon 
which  such  taxes  are  a  lien  will  be  attached  and  sold  for 
taxes,  penalty  and  costs,  such  sale  to  be  made  at  the 
discretion  of  the  collector  of  taxes  from  car  companies. 
It  is  hereby  made  the  duty  of  all  railroads  and  railways 
doing  business  in  the  State  to  furnish  the  collector  of  taxes 
from  car  companies  with  any  information  he  may  desire, 
and  within  the  knowledge  of  said  railroad  or  railway  com- 
panies, that  will  aid  the  said  collector  in  the  performance 
of  his  duties.  The  laws  set  forth  in  this  Act  for  the  sale, 
redemption,  etc.,  of  property  for  delinquent  taxes  are 
hereby  made  to  apply  to  the  sale  of  property  of  car 
companies  for  delinquent  taxes.  After  all  sales  are  made, 
the  collector  of  taxes  from  car  companies  must,  without 
delay  remit  to  the  State  Treasurer  the  taxes  collected  from 
car  companies  due  the  State,  and  to  each  county  treasurer 


170 

all  taxes  collected  from  car  companies  due  to  his  county 
and  to  the  several  taxing  districts  therein,  together  with 
a  list  of  the  said  districts  and  the  amounts  due  to  each. 

204.  Within  ten  days  after  the  date  of  the  last 
publication  of  the  delinquent  tax  list,  the  publisher,  man- 
aging clerk,  or  other  responsible  official  of  the  newspaper 
making  such  publication,  shall  file  with  the  Secretary  of 
the  State  Board  of  Equalization  a  true  copy  of  said  de- 
linquent list  as  published  in  said  newspaper,  each  page  of 
said  copy  to  be  substantially  mounted  on  heavy  card- 
board and  the  sheets  so  fastened  together  as  to  provide  for 
and  secure  accessibility,  and  attach  thereto  his  affidavit 
to  the  effect  that  said  delinquent  list,  and  the  whole 
thereof,  was  duly  published  in  each  and  every  issue  of 
said  newspaper  on  the  dates  specified  in  said  affidavit. 
This  affidavit  may  be  sworn  to  before  any  person 
authorized  to  administer  oaths  in  the  State  of  Utah,  and 
when  so  attached  to  a  copy  of  said  delinquent  list,  as 
herein  provided,  shall  be  prima  facie  evidence  of  the  facts 
therein  recited. 


SALE. 

205.  On  the  fourth  Monday  of  December  of  each 
year,  the  County  Treasurer  shall  expose  for  sale,  between 
the  hours 't)f  ten  a.  m.  and  three  p.  m.,  sufficient  of  all 
delinquent  real  estate  to  pay  the  taxes  and  costs  at  public 
auction,  at  the  front  door  of  the  County  Court  House,  and 
sell  the  same  to  the  highest  responsible  bidder  for  cash, 
and  the  treasurer  shall  continue  to  sell  from  day  to  day 
between  such  hours  until  the  property  of  all  delinquents  is 
exhausted  or  the  taxes  and  costs  are  paid.  In  offering 
such  real  estate  for  sale,  the  treasurer  shall  offer  the 
entire  tract  assessed,  and  the  first  bid  received  in  an 
amount  sufficient  to  pay  the  tax  and  costs  shall  be 
accepted,  unless  a  further  bid  in  the  same  amount  for  less 
than  the  entire  tract  shall  be  received;  and  the  highest 
and  best  bid  shall  be  construed  to  mean  the  bid  of  that 
bidder  who  will  pay  the  full  amount  of  the  taxes  and 
costs  for  the  smallest  undivided  portion  of  said  real 
estate.     After  receiving  a  bid  for  the  full  amount  of  the 


171 

taxes  and  costs,  it  shall  not  be  the  duty  of  the  treasurer 
to  attempt  to  secure  a  higher  bid,  but  he  shall  accept 
it  if  made.  The  treasurer  shall  make  a  record  of  all 
sales  of  real  property  in  a  book  to  be  kept  by  him  for  that 
purpose,  therein  describing  the  several  parcels  of  real 
property  on  which  the  taxes  and  costs  were  paid  by  the 
purchasers,  in  the  same  order  as  the  published  list  of  de- 
linquent sales  contained  in  the  list  of  advertisements  on 
file  in  his  office,  stating  in  separate  columns  the  amount 
as  obtained  from  the  tax  list  of  each  kind  of  tax  and 
costs  for  each  tract  or  lot,  to  whom  sold  and  the  date  of 
sale.  A  separate  column  shall  also  be  provided  in  said 
record  in  which  the  treasurer  shall  enter  the  date  of  the 
redemption. 

206.  The  purchaser  shall  not  be  required  to  pay  the 
treasurer  the  amount  of  the  penalty,  but  the  same 
accrues  for  the  benefit  of  the  purchaser.  When  all  sales 
have  been  made,  the  treasurer  shall  file  the  record  in 
his  office;  provided,  that  in  all  counties  there  shall  be 
adopted  a  uniform  system  of  tax  sale  record,  which  shall 
be  recommended  by  the  State  Auditor,  and  that  a  dupli- 
cate of  said  record  of  each  county,  so  far  as  it  relates  to 
sales  to  the  county,  shall  be  furnished  by  the  county 
treasurer  to  the  State  Auditor  in  loose-leaf  or  bound 
form,  as  may  be  directed  by  the  State  Auditor,  and  to 
which  shall  be  added  the  subsequent  taxes  of  the  succeed- 
ing year,  together  with  the  redemptions  as  reported  to  the 
State  Auditor  by  the  treasurers  of  the  various  counties, 
upon  blanks  to  be  prescribed  by  the  State  Auditor. 

207.  It  shall  be  the  duty  of  the  county  treasurer  to 
issue  a  receipt  to  any  person  paying  taxes  on  an  un- 
divided interest  in  real  estate,  showing  the  interest  on 
which  taxes  are  paid,  and  in  case  any  portion  of  the  taxes 
on  such  real  estate  remains  unpaid,  it  shall  be  the  duty 
of  the  treasurer  to  sell  only  such  undivided  interest  in 
said  real  estate  as  belongs  to  the  co-owners  who  have 
not  paid  their  portion  of  the  tax. 

208.  When  real  estate  is  sold  for  taxes,  the  treasurer 
shall  make  out,  sign,  and  deliver  to  the  purchaser  of  any 
real  property  sold  for  the  payment  of  taxes,  as  aforesaid, 


172 

a  certificate  of  sale,  describing  the  property  on  which 
the  taxes  and  costs  were  paid  by  the  purchaser,  as  the 
same  was  described  in  the  record  of  sales,  and  also  how 
much  and  what  part  of  each  tract  or  lot  was  sold,  and 
stating  the  amount  of  each  kind  of  tax  and  costs  for 
each  tract  or  lot  for  which  the  same  was  sold,  as  described 
in  the  record  of  sales,  and  that  payment  has  been  made 
therefor.  If  at  any  tax  sale  no  person  shall  bid  and  pay 
the  treasurer  the  amount  of  tax  and  costs,  required  to 
be  paid  as  aforesaid  on  any  real  estate,  the  treasurer  shall 
make  to  the  county  a  certificate,  substantially  in  the  form 
prescribed  in  Section  210,  and  deliver  the  same  to  the 
county  auditor,  and  such  sale  to  the  county  shall  have  the 
same  effect  as  if  made  to  an  individual,  and  the  county 
auditor  shall  credit  the  treasurer  with  the  amount  of  the 
tax  due  thereon. 


209.  The  certificate  of  sale,  when  the  sale  is  made  to 
any  person  other  than  the  county,  shall  be  substantially 
in  the  following  form,  and  may  be  recorded  in  the  office 
of  the   County   Recorder   without   acknowledgment: 

This  certifies  that  on  the day  of , 

19 .... ,  in  pursuance  of  law,  I,  as  treasurer  of 

County,  Utah,  sold  to , 

subject  to  redemption,  as  provided  by  law,  the  property 

situated  in  the  County  of ,  State  of  Utah, 

hereinafter    described,    for    the    delinquent    State,    State 

school,  county,  county  school,  city,  city  school, , 

and  district  school  taxes  assessed  in  the  name  of 

as  owner,  against  said  property  for  the  year 

and  the  costs  of  advertising  and  sale;  that  the  penalty  as- 
sessed against  the  owner  for  the  non-payment  of  such  tax 

is  $ ;  that  a  description  of  the  property  named 

is  as  follows,  to  wit : 

That  the  amount  of  each  kind  of  taxes  and  the  costs  for 
which  the  same  was  sold  are  as  follows,  to  wit: 


173 


State 
and 
State 
School 
Taxes 

County 
and 

County 
School 
Taxes 

City 
Taxes 

City 
School 
Taxes 

District 
School 
Taxes 

Penalty 

Adver- 
tising 
Costs 

Costs 

of 

Sale 

Total 

$ 

1 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

and  that  payment  has  been  made  therefor. 

Date ,  19 

Treasurer  of County,  Utah. 


210.  The  certificate  of  sale,  when  the  property  is 
sold  to  the  county  shall  be  substantially  in  the  follow- 
ing form,  and  may  be  recorded  in  the  office  of  the  county 
recorder  without  acknowledgment: 

This  certifies  that  on  the day  of , 

19.  ... ,  in  pursance  of  law,  I,  as  treasurer  of « 

County,  Utah,  offered  for  sale  subject  to  redemption  as 
provided  by  law,  the  property  situated  in  the  County  of 

,  State  of  Utah,  hereinafter  described,  for  the 

delinquent  State,  State  school,  county,  county  school,  city, 

city  school,   ,  and  district  school  taxes 

assessed    in    the    name    of 

as  owner,  against  said  property  for  the  year  19 .... ,  to- 
gether with  the  penalty  provided  by  law  and  the  costs 
of  advertising  and  sale;  that  a  description  of  the  property 

named  is  as  follows,  to  wit : ; 

that  the  amount  of  each  kind  of  taxes,  penalty  and  the 
costs  for  which  the  same  was  offered  are  as  follows, 
to  wit: 


State 

County 

and 

and 

City 
Taxes 

City 

District 

Adver- 

Costs 

State 

County 

School 

School 

Penalty 

tising 

of 

Total 

School 

School 

Taxes 

Taxes 

Costs 

Sale 

Taxes 

Taxes 

$ 

1 

$ 

« 

« 

$ 

$ 

$ 

$ 

174 

That  pursuant  to  said  offer  no  person  offered  to  bid 
and  pay  the  treasurer  the  amount  of  the  tax,  penalty  and 
costs  required  to  be  paid  as  aforesaid;  therefore,  pursuant 

to  law,  said  property  was  sold  to 

County  and  this  certificate  issued  as  evidence  thereof. 

Date 19 

Treasurer  of .  . County,  Utah. 

211.  The  certificates  of  sale  herein  provided  for, 
when  signed  by  the  County  Treasurer  and  delivered  to 
the  purchaser,  whether  the  same  be  the  county  or  an 
individual,  shall  be  prima  facie  evidence  of  the  regularity 
of  all  proceedings  connected  with  the  assessment  no- 
tice, equalization,  levies,  advertisement  and  sale  of  the 
property  therein  described,  and  the  burden  of  showing 
any  irregularity  in  any  of  the  proceedings,  resulting  in 
the  sale  of  property  for  the  non-payment  of  delinquent 
taxes,  shall  be  on  him  who  asserts  it. 

212.  If  the  purchaser  does  not  pay  the  tax  and  costs 
before  five  o'clock  p.  m.  of  the  day  following  the  sale, 
the  property,  on  the  next  sale  day,  before  the  regular 
sale,  must  be  resold  for  taxes  and  costs.  The  bid  of  any 
person  refusing  to  make  the  payment  for  the  property 
purchased- Jby  him  must  not  be  received  on  the  sale  of  any 
property  advertised  in  the  delinquent  tax  list  of  that  year. 

213.  While  a  certificate  of  sale  is  held  by  the  county, 
the  treasurer  shall  not  sell  the  property  covered  by  such 
certificate  for  taxes,  but  the  county  auditor  shall  credit 
the  treasurer  with  the  amount  of  tax  due  thereon.  In  any 
case  the  party  redeeming  shall  pay  all  taxes  that  may  be 
assessed,  and  interest,  penalty  and  costs  that  may  accrue 
upon  land  subsequent  to  the  sale.  When  all  the  sales  shall 
have  been  made  and  settlement  by  the  county  treasurer 
with  the  county  auditor  shall  have  been  made  for  the 
same,  the  county  auditor,  within  ten  days  of  such  settle- 
ment, shall  certify  to  the  State  Auditor  the  total  amount 
of  the  State  and  State  school  taxes  due  on  the  property 
so  sold  to  the  county  for  delinquent  taxes,  and  also  the 


175 

total  amount  of  such  tax  credited  the  county  treasurer  on 
such  property  on  account  of  taxes  accrued  while  the 
certificate  of  sale  for  such  property  is  held  by  the  county. 

214.  The  treasurer  shall  collect  two  dollars  for  each 
certificate  of  sale  in  full  for  all  his  services,  and  shall 
charge  and  collect  twenty-five  cents  for  publishing  the 
name  and  amount  of  taxes  due  on  each  piece  of  property 
sold,  which  sums  shall  be  paid  by  him  into  the  county 
treasury. 

215.  If  the  treasurer  discovers  before  the  sale  that 
on  account  of  any  irregular  assessment  or  of  any  other 
error  any  land  ought  not  to  be  sold,  he  must  not  offer 
that  land  for  sale;  and  the  board  of  county  commissioners 
must  cause  the  assessor  to  enter  the  uncollected  taxes  upon 
the  assessment  roll  of  the  next  succeeding  year,  on  the 
basis  of  the  valuation  and  rates  of  the  year  for  which  it 
was  erroneously  assessed,  to  be  collected  as  other  taxes 
are  collected  thereon. 

216.  Whenever  property  is  advertised  for  sale  for 
the  non-payment  of  delinquent  taxes,  and  the  assessment 
is  valid  in  part,  and  void  for  the  excess,  the  sale  must 
not  for  that  cause  be  deemed  invalid,  nor  any  grant 
subsequently  made  thereunder  be  held  insufficient  to  pass 
a  title  to  the  grantee,  unless  the  owner  of  the  property, 
or  his  agent,  not  less  than  six  days  before  the  time  at 
which  the  property  is  advertised  to  be  sold,  delivers  to  the 
treasurer  a  protest  in  writing  signed  by  the  owner  or 
agent,  specifying  the  portion  of  the  tax  which  he  claims 
to  be  invalid,  and  the  ground  upon  which  such  claim  is 
based. 

217.  In  case  any  owner  of  property  advertised  to  be 
sold  for  delinquent  taxes,  at  least  six  days  before  the  time 
advertised  for  the  sale  to  take  place,  delivers  to  the 
county  treasurer  his  protest  in  writing  against  such  sale, 
signed  by  himself  or  his  agent,  claiming  that  the  assess- 
ment is  void,  in  whole  or  in  part,  and  if  in  part  only,  for 
what  portion,  and  in  either  case  specifying  the  ground 
upon  which  such  claim  is  founded,  it  is  the  duty  of  the 


176 

treasurer,  either  to  sell  the  property  assessed  for  the 
whole  amount  appearing  upon  the  assessment  roll,  or  to 
withdraw  the  property  from  sale,  and  report  the  case  to 
the  board  of  county  commissioners  for  its  directions  in 
the  premises,  and  in  such  case  the  board  may  either  direct 
the  foreclosure  of  the  lien  of  such  tax  by  action,  which 
proceeding  is  hereby  authorized  to  be  had,  or  direct  the 
treasurer  to  proceed  with  the  sale. 

"  218.  When  land  is  sold  for  taxes,  correctly  imposed, 
as  the  property  of  a  particular  person,  no  misnomer  of 
the  owner  or  supposed  owner,  or  other  mistake  relating 
to  the  ownership  thereof,  affects  the  sale  or  renders  it 
void  or  voidable. 


REDEMPTION. 

219.  Real  estate  sold  for  taxes  may  be  redeemed  by 
any  person  interested  therein  at  any  time  within  three 
ye^rs  after  the  date  of  the  sale  thereof  by  such  person 
paying  into  the  county  treasury  for  the  use  of  the  pur- 
chaser or  his  legal  representatives,  the  amount  paid  by 
the  purchaser,  and  all  costs  and  penalties  as  aforesaid, 
together  with  the  sum  of  fifty  cents  for  a  redemption 
certificate,  and  all  taxes  that  have  accrued  thereon  and 
which  have  been  paid  by  the  purchaser  after  his  purchase 
to  the  time  of  redemption,  together  with  interest  at  the 
rate  of  one  per  cent  per  month  on  the  whole  from  the  date 
on  which  the  taxes,  for  which  the  property  was  sold, 
were  delinquent  to  the  day  of  redemption;  provided,  that 
when  two  or  more  parties  are  interested  in  a  piece  of 
property  which  has  been  sold  for  taxes,  either  party  may 
redeem  the  property  in  which  he  is  interested  upon  pay- 
ment of  the  portion  of  the  taxes,  interest,  penalty  and 
costs  which  his  interest  bears  to  the  whole,  together 
with  the  sum  of  fifty  cents  for  a  redemption  certificate. 

220.  The  county  .treasurer  shall,  when  any  property 
is  redeemed,  make  the  proper  entry  in  the  record  of  tax 
sales  filed  in  his  office,  and  issue  a  certificate  of  redemp- 
tion, which  entry  or  such  certificate  of  the  fact  of  the 


177 

redemption  properly  certified  by  the  treasurer  shall  be 
prima  facie  evidence  of  such  redemption,  and  may  be 
recorded  in  the  office  of  the  county  recorder  without 
acknowledgment. 

221.  The  county  treasurer  shall,  on  or  before  the 
15th  day  of  February,  A.  D.  1914,  and  of  each  year  there- 
after, transmit  to  the  county  recorder  a  certified  tax  sale 
record  of  the  sales  under  the  levies  for  the  previous 
year,  showing  in  separate  columns  the  name  of  the  person 
to  whom  ■  assessed,  the  description  of  the  tract  sold,  the 
date  of  the  sale,  and  to  whom  sold;  and  each  line  on  each 
page  shall  be  numbered  consecutively,  and  the  county 
recorder  shall  enter  all  items  shown  by  such  record  in  the 
abstract  books  of  his  office. 

222.  The  county  treasurer  shall  transmit  to  the 
county  recorder  daily  (if  he  has  any  matter  as  herein- 
after provided  to  report)  a  transcript  of  redemptions 
made,  or  private  sales  made  by  him,  which  transcript  shall 
make  reference  to  the  book,  page  and  line  of  the  tax 
sale  record  where  the  original  sale  is  listed,  the  name 
of  the  person  in  whose  name  sold,  the  tax  number,  lot, 
block,  plat  and  survey,  or  the  quarter  section,  section, 
township  and  range,  as  the  case  may  be,  together  with  the 
name  of  the  person  making  such  redemption  or  making 
such  purchase  at  private  sale ;  and  the  county  recorder 
shall  enter  the  items  contained  in  such  transcript  in  the 
proper  place  in  the  tax  sale  records  to  which  they  refer. 

223.  The  tax  sale  records  hereinbefore  provided  for 
shall  be  transmitted  to  and  kept  in  the  county  recorder's 
office,  and  shall  be  considered  the  official  record  of  tax 
sales. 

224.  The  owner  of  an  undivided  interest  in  real 
estate  may  redeem  his  interest  from  any  sale  for  the  non- 
payment of  delinquent  taxes  at  any  time  within  the  period 
of  redemption  by  paying  to  the  treasurer  his  pro  rata 
proportion  of  the  tax  for  which  said  property  was  sold, 
together  with  his  proportion  of  all  the  interest,  costs  and 
penalties  which  have  attached  by  reason  of  such  sale. 


12-TR 


178 

225.  When  a  redemption  shall  be  made  of  an  un- 
divided interest  in  real  estate  which  has  been  sold  for  the 
non-payment  of  delinquent  taxes,  the  county  treasurer 
shall  issue  to  the  owner  of  such  undivided  interest,  or  to 
the  person  making  such  redemption,  a  redemption  certifi- 
cate showing  the  name  of  the  owner  of  the  interest 
redeemed,  and  the  amount  of  the  undivided  interest  in  such 
real  estate  on  which  redemption  has  been  made,  and  the 
owner  of  such  redeemed  undivided  interest  shall  not  be 
made  a  party  to  any  action  to  foreclose  a  certificate  of  tax 
sale  on  any  property  from  which  he  has  redeemed  his 
undivided  interest,  and  any  decree  purporting  to  foreclose 
a  tax  certificate  against  the  entire  property,  when  an 
undivided  interest  has  been  redeemed  in  accordance  with 
the  provisions  of  this  Act,  shall  be  void,  as  to  the  un- 
divided interest  so  redeemed. 

226.  There  is  no  duty  nor  obligation  in  this  State 
on  the  part  of  one  co-owner  or  joint  owner  of  real  estate 
to  pay  any  portion  of  the  taxes  on  such  real  estate  except 
his  own,  and  therefore  any  owner  of  an  undivided  interest 
•in  real  estate  is  not  estopped  by  reason  of  such  joint 
ownership  from  acquiring  the  interest  of  his  co  or  joint 
owners  in  said  real  estate  at  tax  sale. 

227.  In  all  eases  where  certificates  of  tax  sale  are 
held  by  the  county,  the  county  c'ommissioners  may,  if  in 
their  judgment  it  is  to  the  best  interest  of  the  county  so  to 
do,  settle  and  release  such  certificate  of  tax  sale  together 
with  lien  for  taxes  for  any  or  all  subsequent  years,  already 
accrued,  by  receiving  in  full  settlement  therefor  a  sum 
less  than  the  full  amount  of  taxes,  interest,  penalties  and 
costs. 

228.  Whenever  property  sold  to  the  county,  pur- 
suant to  the  provisions  of  this  Act,  is  redeemed  or  the 
certificate  of  sale  is  assigned  as  herein  provided,  the 
moneys  received  on  account  of  such  redemeption  or  assign- 
ment must  be  distributed  in  the  same  manner  as  taxes 
collected  before  sale,  except  that  to  the  State,  and  each 
taxing .  district  shall  also  be  apportioned  the  proportion 
of  interest,  accrued  and  collected,  to  which  it  is  entitled. 


In  all  cases  where  a  sum  less  than  the  taxes,  penalty, 
interest  and  costs  is  accepted  in  settlement,  it  shall  be  the 
duty  of  the  county  auditor,  upon  making  his  next  regular 
report  to  the  State  Auditor,  to  report  the  fact  of  such 
settlem.ent  together  with  the  amount  of  money  received  by 
the  county,  and  the  money  so  received  shall  be  apportioned 
as  follows: 

First.  To  the  county  such  proportion  of  the  penalty 
and  costs  due  as  the  amount  received  bears  to  the  amount 
of  the  total  of  taxes,  penalties,  interest  and  costs  due. 

Second.  The  balance  to  be  apportioned  to  the  State, 
county  and  several  taxing  districts  therein  in  the  propor- 
tion that  the  amount  of  the  several  levies  bears  to  the 
total  tax  levy  in  the  year  for  which  the  property  was  sold. 

229.  The  Board  of  County  Commissioners  shall, 
during  the  month  of  May  each  year,  after  giving  the 
statutory  notice,  offer  for  sale  at  the  front  door  of  the 
county  court  house,  at  the  time  specified  in  the  notice,  all 
real  estate,  the  title  to  which  is  vested  in  the  county 
under  proceedings  for  foreclosure  of  tax  certificate,  not 
heretofore  sold  or  redeemed;  provided,  that  in  cases 
where  the  description  of  such  real  estate  is  so  defective 
as  to  convey  no  title,  such  real  estate  shall  not  be  so 
offered.  The  county  clerk  is  authorized  to  execute  deeds 
therefor  in  the  name  of  the  county  and  attested  by  his 
seal,  vesting  in  the  purchaser  all  of  the  title  of  the  State, 
of  the  county,  and  of  each  city,  town,  school  or  other 
taxing  district  interested  in  real  estate  to  be  sold.  The 
money  arising  from  such  sale  must  be  paid  into  the  county 
treasury,  and  the  treasurer  must  settle  for  the  same  as  in 
the  case  of  money  received  for  redemption,  as  provided  in 
the  next  preceding  section.  The  Board  of  County  Com- 
missioners may,  at  any  time  after  the  period  of  redemption 
has  expired  and  before  the  sale  as  herein  provided,  permit 
a  redemption  from  any  sale  where  the  property  has  been 
sold  to  the  county.  All  property,  for  which  there  is  no 
purchaser  at  the  sale  provided  for  in  this  section,  shall 
thereafter  be  disposed  of  on  the  day  of  the  first  regular 
meeting  of  the  Board  of  County  Commissioners  in  any 
month,  at  either  public  or  private  sale,  as  the  said  board 


180 

may  determine,  and  the  money  received  therefor  shall  be 
apportioned  as  in  the  manner  of  tax  sale  redemptions. 

230.  At  any  time  after  the  sale  shall  have  closed  and 
before  the  time  for  redemption  has  expired,  the  county 
treasurer  is  authorized  and  required,  at  private  sale,  at  his 
office,  to  sell  and  assign  the  interest  of  the  county  in 
any  of  the  real  estate  sold  to  the  county  for  delinquency, 
to  any  person  who  will  pay  the  amount  of  the  delinquent 
taxes,  penalty,  interest,  and  costs  thereon  for  the  same, 
and  to  make  out  duplicate  receipts  for  the  purchaser  of 
such  real  estate,  on  which  he  shall  write  ''Sold  for  taxes  at 
private  sale,"  and  deliver  such  receipts  to  the  purchaser. 
Upon  presentation  of  one  of  such  receipts  to  the  county 
auditor,  he  shall  make  out  and  deliver  to  the  purchaser 
an  assignment  of  the  certificate  of  sale  made  to  the  county. 
Real  estate  sold  to  the  county  and  afterwards  assigned 
shall  be  subject  to  redemption  at  any  time  within  three 
years  after  the  date  of  the  original  sale,  as  provided  in 
Section  219. 


FORECLOSURE. 

231.  At  any  time  after  the  expiration  of  three 
full  years  from  the  date  of  the  tax  certificate,  no  redemp- 
tion having  been  made,  the  owner  of  such  certificate  may 
maintain  an  action  in  the  District  Court  of  the  county 
in  which  such  property  is  situated  to  foreclose  his  lien 
against  said  property  as  evidenced  by  such  certificate. 
Said  action,  except  as  herein  expressly  modified,  shall  be 
in  the  form  of  an  action  to  foreclose  mortgages  on  real 
estate,  and  the  decree  entered  therein  shall  be  a  decree  of 
foreclosure,  and  the  property  shall  be  sold  to  satisfy  the 
judgment  rendered  in  the  same  manner,  and  subject  to 
estate  mortgages,  except  that  no  deficiency  judgment 
may  be  rendered  against  any  party  to  said  action  after 
such  sale. 

232.  A  complaint  in  such  action  shall  be  deemed 
sufficient,  which  states  the  fact  of  the  issuance  of  the 
the   same   period   of   redemption   as   in   the   case   of   real 


181 

certificate  of  sale,  describing  it;  that  no  redemption  has 
been  made,  and  prays  for  appropriate  relief.  It  must  in 
all  cases  be  verified. 

233.  In  actions  to  foreclose  such  certificates  of  sale, 
junior  lien  holders  must  be  made  parties  defendant  if 
it  is  desired  to  preserve  the  priority  of  the  tax  lien,  but 
no  judgment  can  be  rendered  against  such  encumbrancers 
or  lien  holders  other  than  the  decree  determining  the  prior- 
ity of  liens. 

234.  When  personal  or  substituted  service  of  the 
summons  in  such  action  is  made  within  the  State,  or 
personal   service   on   the   non-resident   defendant   is   made 


ERRATUM. 

The  last  line  on  page  180,  being  the  third  line  in 
Section  232,  is  misplaced.  Its  proper  position  is  as  line 
twelve  in  Section  231,  on  the  same  page. 


the  clerk  or  the  court  m  wnicn  ine  Hcuun  ih  uiuu^iii, 
and  such  affidavit  also  states  that  said  action  is  brought 
to  foreclose  a  tax  certificate  against  the  defendant  in 
respect  to  whom  the  service  of  the  summons  is  to  be 
made,  or  that  he  or  it  is  a  necessary  or  proper  party  to 
the  action,  the  clerk  of  the  court  in  which  the  action  is 
commenced  shall  cause  the  service  of  the  summons  to 
be  made  by  publication  thereof,  which  publication  shall 
be  made  as  provided  by  law. 

236.  Where  the  affidavit  for  publication  alleges  that 
the  defendant,  after  due  diligence,  cannot  be  found  within 
the  State,  it  shall  be  sufficient  evidence  of  due  diligence 
that  such  affidavit  shows  that  a  summons  has  been  placed 
in  the  hands  of  the  sheriff  of  the  county  in  which  the 
action    is    brought   for    service    and    returned    not    served 


180 

may  determine,  and  the  money  received  therefor  shall  be 
apportioned  as  in  the  manner  of  tax  sale  redemptions. 

230.  At  any  time  after  the  sale  shall  have  closed  and 
before  the  time  for  redemption  has  expired,  the  county 
treasurer  is  authorized  and  required,  at  private  sale,  at  his 
office,  to  sell  and  assign  the  interest  of  the  county  in 
any  of  the  real  estate  sold  to  the  county  for  delinquency, 
to  any  person  who  will  pay  the  amount  of  the  delinquent 
taxes,  penalty,  interest,  and  costs  thereon  for  the  same, 
and  to  make  out  duplicate  receipts  for  the  purchaser  of 
such  real  estate,  on  which  he  shall  write  ''Sold  for  taxes  at 
private  sale,"  and  deliver  such  receipts  to  the  purchaser. 


full  3^bars  iiuiii   tilt;  ua,ic  m    uic   lcia  uci  uixn^at/C,   iiu   icuciinj- 

tion  having -been  made,  the  owner  of  such  certificate  may 
maintain  an  action  in  the  District  Court  of  the  county 
in  which  such  property  is  situated  to  foreclose  his  lien 
against  said  property  as  evidenced  by  such  certificate. 
Said  action,  except  as  herein  expressly  modified,  shall  be 
in  the  form  of  an  action  to  foreclose  mortgages  on  real 
estate,  and  the  decree  entered  therein  shall  be  a  decree  of 
foreclosure,  and  the  property  shall  be  sold  to  satisfy  the 
judgment  rendered  in  the  same  manner,  and  subject  to 
estate  mortgages,  except  that  no  deficiency  judgment 
may  be  rendered  against  any  party  to  said  action  after 
such  sale. 

232.  A  complaint  in  such  action  shall  be  deemed 
sufficient,  which  states  the  fact  of  the  issuance  of  the 
the   same   period   of   redemption   as   in   the   case   of   real 


181 

certificate  of  sale,  describing-  it;  that  no  redemption  has 
been  made,  and  prays  for  appropriate  relief.  It  must  in 
all  cases  be  verified. 

233.  In  actions  to  foreclose  such  certificates  of  sale, 
junior  lien  holders  must  be  made  parties  defendant  if 
it  is  desired  to  preserve  the  priority  of  the  tax  lien,  but 
no  judgment  can  be  rendered  against  such  encumbrancers 
or  lien  holders  other  than  the  decree  determining  the  prior- 
ity of  liens. 

234.  When  personal  or  substituted  service  of  the 
summons  in  such  action  is  made  within  the  State,  or 
personal  service  on  the  non-resident  defendant  is  made 
by  the  sheriff  of  the  county  in  v^hich  he  resides,  then  the 
posting  of  notice  of  the  pendency  of  said  action  on  the 
premises  or  elsewhere  shall  not  be  required. 

235.  When  the  person,  on  whom  the  service  of  a 
summons  is  to  be  made  resides  out  of  the  State  or  has 
departed  from  the  State,  or  cannot,  after  due  diligence 
be  found  within  the  State,  or  conceals  himself  to  avoid 
the  service  of  the  summons;  or  when  the  defendant  is  a 
foreign  corporation,  having  no  managing  or  business 
agent,  cashier,  secretary  or  other  officer  within  the  State, 
and  an  affidavit  stating  any  of  these  facts  is  filed  with 
the  clerk  of  the  court  in  which  the  action  is  brought, 
and  such  affidavit  also  states  that  said  action  is  brought 
to  foreclose  a  tax  certificate  against  the  defendant  in 
respect  to  whom  the  service  of  the  summons  is  to  be 
made,  or  that  he  or  it  is  a  necessary  or  proper  party  to 
the  action,  the  clerk  of  the  court  in  which  the  action  is 
commenced  shall  cause  the  service  of  the  summons  to 
be  made  by  publication  thereof,  which  publication  shall 
be  made  as  provided  by  law. 

236.  Where  the  affidavit  for  publication  alleges  that 
the  defendant,  after  due  diligence,  cannot  be  found  within 
the  State,  it  shall  be  sufficient  evidence  of  due  diligence 
that  such  affidavit  shows  that  a  summons  has  been  placed 
in  the  hands  of  the  sheriff  of  the  county  in  which  the 
action    is    brought    for    service    and    returned    not    served 


182 

because  not  found,  and  that  a  further  copy  of  the  summons 
was  placed  in  the  hands  of  the  sheriff  of  any  county  in  the 
State  where  the  defendant  may  be  shown  to  be  residing 
by  that  entry  in  the  assessment  roll  relating  to  that  par- 
ticular property  for  the  year  in  which  the  tax  was  levied 
for  which  the  property  was  sold,  or  any  subsequent  year, 
and  such  summons  shall  be  returned  not  served  because 
not  found;  and  that  a  further  copy  of  the  summons  has 
been  delivered  to  the  sheriff  of  any  county  in  this  State, 
shown  by  the  instrument  of  record  in  the  office  of  the 
county  recorder  of  the  county  where  the  property  is 
situated,  through  which  the  said  defendant  acquired  his 
interest  in  said  described  property,  as  being  the  place  of 
residence  of  said  defendant,  and  returned  not  served  be- 
cause not  found ;  and  further  recites  that  the  place  of 
residence  is  unknown  to  the  person  making  such  affidavit, 
and  if  made  by  any  person  other  than  the  plaintiff,  that 
he  verily  believes  that  the  place  of  residence  of  such 
defendant  is  also  unknown  to  said  plaintiff. 

237.  When  the  affidavit  for  publication  of  summons 
alleges  that  the  defendant  resides  out  of  the  State,  and 
further  recites  that  his  place  of  residence  is  unknown  to 
the  affiant,  and  if  the  affidavit  is  made  by  any  person 
other  than  the  plaintiff  but  according  to  the  best  informa- 
tion and  belief  of  the  affiant,  it  is  also  unknown  to  the 
plaintiff,  then  such  affidavit  shall  further  state  that  an 
examination  has  been  made  of  that  portion  of  the  assess- 
ment roll  relating  to  the  particular  property  for  the 
year  in  which  the  tax  was  levied  for  which  the  property 
was  sold,  and  for  all  subsequent  years,  and  if  such  assess- 
ment roll  or  rolls  discloses  the  alleged  place  of  residence 
of  the  defendant,  the  affidavit  shall  so  state,  and  the  copy 
of  the  summons  and  complaint  shall  be  mailed  to  the 
address  shown  by  the  last  assessment  roll  in  which  an 
address  for  the  defendant  appears  in  connection  with  the 
assessment  of  said  property,  and  the  plaintiff  shall  be 
adjudged  to  have  used  due  diligence  in  ascertaining  the 
place  of  residence  of  said  defendant.  If  an  address  does 
not  appear  on  any  of  said  assessment  rolls  in  connection 
with  the  assessment  of  said  property,  the  affidavit  shall 
so  state  and  shall  further  allege  that  affiant  has  examined 


183 

the  record  in  the  office  of  the  county  recorder  of  said 
county  of  the  instrument  by  which  the  said  defendant 
claims  title  to  the  property  in  issue,  and  if  such  instru- 
ment names  a  place  of  residence  of  said  defendant,  then  a 
copy  of  the  summons  and  complaint  in  said  action  shall  be 
mailed  to  the  defendant  at  the  address  so  shown,  and  the 
plaintiff  shall  be  adjudged  to  have  used  due  diligence  in 
ascertaining  the  place  of  residence  of  said  defendant. 

238.  In  the  event  that  neither  any  copy  of  the 
assessment  roll,  as  hereinbefore  described,  or  the  record 
of  the  instrument  conveying  title  to  the  defendant,  con- 
tains any  statement  as  to  the  alleged  place  of  residence 
of  the  defendant,  the  affidavit  for  publication  shall  so 
state,  and  shall  further  state  that  the  affiant  does  not 
know  the  place  of  residence  of  said  defendant,  and  if  said 
affidavit  is  made  by  any  person  other  than  the  plaintiff 
and  according  to  the  information  and  belief  of  the  affiant, 
it  is  also  unknown  to  the  plaintiff,  then  the  plaintiff  shall 
be  adjudged  to  have  used  due  diligence  to  discover  the  place 
of  residence  of  the  defendant,  and  no  copy  of  the  complaint 
and  summons  need  be  mailed. 

239.  Where  service  on  any  defendant  in  such  action 
is  made  by  publication,  a  copy  of  the  summons  in  said 
action  shall  be  posted  in  a  conspicuous  place  on  the 
premises  against  which  a  decree  of  foreclosure  is  sought, 
which  said  notice  shall  be  posted  at  least  twenty  days 
before  the  time  when  the  defendant,  against  whom  service 
by  publication  is  had,  is  required  to  appear  and  defend. 
Proof  of  such  posting  shall  be  by  affidavit  of  the  person 
posting  the  same,  which  may  be  done  by  any  person 
competent  to  serve  a  summons  in  said  action  in  this  State. 

24Q.  Any  person  removing,  defacing  or  destroying 
any  summons  posted  in  accordance  with  the  provision  of 
the  foregoing  section  shall  be  deemed  guilty  of  a  mis- 
demeanor and  punished  accordingly. 

241.  In  all  actions  for  the  foreclosure  of  a  certificate 
of  tax  sale,  the  successful  party  shall  be  entitled  to  recover 
an  attorney's  fee  of  twenty-five  dollars  to  be  taxed  as  costs 
in  said  action. 


184 

242.  At  the  time  of  the  commencement  of  an  action 
to  foreclose  a  certificate  of  tax  sale,  the  plaintiff  or  his 
attorney  may  deliver  to  the  treasurer  of  the  county  in 
which  such  action  is  brought  a  notice  naming  the  court 
in  which  such  action  is  brought,  describing  the  certifi- 
cate which  is  sought  to  be  foreclosed,  and  stating  that  an 
action  has  been  commenced  to  foreclose  the  same,  and 
thereafter  the  treasurer  shall  have  no  authority  to  accept 
any  payment  in  redemption  of  such  certificate,  and  no 
redemption  can  be  made  without  the  consent  of  the 
plaintiff  until  after  the  entry  of  the  decree  of  foreclosure 
in  such  action,  when  the  redemption  can  be  made  at  any 
time  within  the  period  of  redemption  by  payment  to  the 
clerk  or  sheriff,  as  the  case  may  be,  of  the  amount  of  the 
judgment,  interest,  attorney's  fees  and  costs  secured  by 
said  decree  together  with  accrued  interest  and  costs,  if 
any. 

248.  No  action  shall  be  maintained  in  any  of  the 
courts  of  this  State  to  set  aside  any  decree  obtained  pur- 
suant to  the  provisions  of  this  Act,  or  to  set  aside  any 
sale  made  pursuant  thereto  after  period  of  redemption 
from  such  sale  has  expired  on  any  other  ground  than 
that  of  fraud  in  the  procuring  of  such  judgment. 

244.  All  certificates  of  sale  issued  prior  to  the  taking 
effect  of  this  Act,  and  on  which  the  period  of  redemption 
has  not  expired  at  the  time  of  taking  effect  of  this  Act, 
shall  be  foreclosed  in  accordance  with  the  provisions 
hereof. 

245.  All  certificates  issued  prior  to  the  taking  effect 
of  this  Act  shall  be  subject  to  a  period  of  redemption  of 
four  years  in  accordance  with  the  provisions  of  law  in 
force  at  the  time  of  the  issuance  of  such  certificates. 


STATE  BOARD  OF  EQUALIZATION. 

246.  The  State  Board  of  Equalization  shall  consist 
of  three  residents  of  the  State  of  Utah,  not  more  than  two 
of  whom  shall  belong  to  the  same  political  party,  and  shall 


185 

be  nominated  by  the  Governor  and  confirmed  by  the 
Senate,  and  shall  each  hold  office  for  a  term  of  six  years, 
except  as  hereinafter  provided: 

247.  After  the  terms  of  the  present  members  of  the 
Board  expire,  the  appointment  shall  be  made  for  such 
terms  as  will  insure  the  expiration  of  the  term  of  one  of 
the  members  of  said  Board  on  each  odd  numbered  year, 
and  to  that  end  the  first  appointments  may  be  made  for 
any  number  of  years  not  exceeding  six. 

248.  The  annual  salary  of  each  member  of  the  Board 
shall  be  thirty-six  hundred  dollars,  payable  quarterly  out 
of  the  State  treasury. 

249.  The  members  of  the  Board  shall  elect  a  presi- 
dent from  their  number  and  a  secretary,  who  shall  not  be 
a  member  of  the  Board,  whose  salary  shall  be  fifteen  hund- 
red dollars  per  annum,  payable  quarterly  out  of  the  State 
treasury.  The  salary  of  fifteen  hundred  dollars  herein 
provided  is  to  be  in  addition  to  the  three  hundred  dollars 
per  annum  allowed  to  the  secretary  for  the  collection  of 
taxes  from  car  companies. 

250.  It  shall  be  the  duty  of  the  Board  to  visit  each 
county  in  the  State  annually  and  examine  all  the  assess7 
ment  books  and  other  books  in  relation  to  taxation  in  each 
county,  and,  so  far  as  possible,  inspect  and  examine  an- 
nually all  the  property  that  it  is  required  to  assess. 

251.  The  powers  and  duties  of  the  State  Board  of 
Equalization  are  as  follows: 

1.  To  elect  a  secretary,  who  shall  hold  office  during 
the  pleasure  of  the  Board,  and  to  appoint  such  clerks,  at 
a  salary  not  to  exceed  three  dollars  per  day,  as  the  re- 
quirements of  the  office  may  demand; 

2.  To  prescribe  rules  for  its  own  government  and 
for  the  transaction  of  its  business; 

3.  To  prescribe  such  rules  and  regulations  as  the 
Board  may  deem  necessary  not  in  conflict  with  the  consti- 


186 

tution  and  laws  of  the  State  to  govern  county  commission- 
ers when  equalizing  and  assessors  when  assessing; 

4.  To  make  out  and  prepare  and  enforce  the  use  of 
forms  in  relation  to  the  assessment  of  property; 

5.  To  hold  regular  meetings  as  provided  by  law,  and 
the  rules  of  the  Board,  and  such  special  meetings  as  may 
be  called  by  the  president  or  a  majority  of  its  members; 

6.  To  annually  assess  the  property,  franchises,  and 
roadway  of  all  railroads,  street  railroad,  car,  telegraph, 
telephone,  electric  light,  pipe  line,  power,  canal,  irrigating 
and  express  companies,  operating  in  more  than  one  county 
in  the  State,  and  all  the  machinery  used  in  mining  and  all 
properties  and  surface  improvements  upon  or  appurtenant 
to  mines  and  mining  claims  which  have  a  value  separate 
and  independent  of  all  such  mines  or  mining  claims,  and 
the  net  annual  proceeds  of  all  mines  and  mining  claims; 

7.  To  transmit  on  or  before  the  fourth  Monday  in 
May  to  the  county  auditor  of  each  county  its  apportion- 
ment of  the  assessment  made  by  such  Board  upon  the 
property  and  franchises  of  railroad,  street  railroad,  car, 
telegraph,  telephone,  electric  light,  pipe  line,  power,  canal, 
irrigating  and  express  companies  operating  in  more  than 
one  county  of  the  State,  and  a  statement  of  the  assess- 
ments of  the  net  proceeds  of  mines,  and  all  machinery 
used  in  mining,  and  all  property  and  surface  improvements 
upon  or  appurtenant  to  mines  and  mining  claims,  which 
have  a  value  separate  and  independent  of  all  such  mines 
or  mining  claims;  and  to  the  State  Auditor  a  copy  of  all 
apportionment  and  assessments  made  by  the  Board; 

8.  To  receive  from  the  several  county  assessors  of 
the  State  and  make  proper  record  thereof,  certificates  of 
assessment  of  transient  live  stock,  and  to  make  computa- 
tion of  the  amount  of  taxes  due  the  several  counties  of  the 
State  froTn  such  live  stock;  to  collect  from  the  several 
counties  that  have  received  more  of  such  taxes  than  they 
were  entitled  to,  such  excess,  and  to  apportion  and  remit 
same  to  the  several  counties  that  have  received  less  than 
they  were  entitled  to  of  such  taxes; 

9.  To  meet  as  heretofore  provided  in  Section  52,  as 
follows : 


187 

(1.)  On  the  first  Monday  in  February  and  continue 
in  session  until  the  first  Monday  in  April,  and  later  if  the 
business  of  the  Board  requires  it; 

(2.)  On  the  third  Monday  in  April,  and  continue  in 
session  until  not  later  than  the  second  Monday  in  May; 

(3.)  On  the  first  Monday  in  July  and  continue  in 
session  until  all  business  that  may  properly  come  before 
the  Board  is  disposed  of; 

10.  At  its  session  commencing  the  first  Monday  in 
February,  assess  the  property  it  is  by  law  required  to 
assess,  and  apportion  to  the  several  counties  of  the  State 
taxes  on  transient  live  stock  as  required  by  law;  at  its 
sessions  commencing  the  third  Monday  in  April  hear  and 
pass  upon  applications  for  corrections  of  assessments  made 
by  it,  and  to  apportion  the  same  to  the  various  counties 
in  the  State;  at  its  session  commencing  the  first  Monday 
in  July,  examine  the  reports  of  county  auditors,  and 
equalize  the  valuation  of  the  taxable  property  of  the  sev- 
eral counties  in  this  State  for  the  purpose  of  taxation,  and 
to  that  end,  upon  such  notice  to  the  county  auditor  of  the 
county  affected  thereby  as  it  may  prescribe  by  rule,  to 
increase  or  lower  the  assessment  of  any  or  all  classes  of 
property  in  any  county,  as  provided  by  law,  so  as  to  equal- 
ize the  assessment  of  the  property  contained  therein,  and 
make  assessment  conform  to  the  value  in  money  of  the 
property  assessed; 

11.  To  visit  as  a  Board,  or  by  the  individual  mem- 
bers thereof,  whenever  deemed  necessary,  the  several 
counties  of  the  State,  for  the  purpose  of  inspecting  the 
property  and  learning  the  value  thereof; 

12.  To  call  before  it,  or  any  member  thereof,  on 
such  visit,  any  officers  of  the  county,  and  to  require  them 
to  produce  any  public  records  in  their  custody; 

13.  To  issue  subpoenas  for  the  attendance  of  wit- 
nesses or  production  of  books  before  the  Board,  or  any 
member  thereof,  which  subpoenas  must  be  signed  by  a 
member  of  the  Board  and  may  be  served  by  any  person; 


188 

14.  To  provide  for  and  hold  at  such  times  and  places 
as  may  be  deemed  necessary  district  conventions  of  county 
officers  for  the  consideration  and  discussion  of  questions 
affecting  taxation,  uniformity  of  records  and  reports,  and 
such  other  matters  of  interest  and  benefit  to  such  county 
officials  as  may  be  deemed  right  and  proper,  and  that  will 
increase  the  efficiency  of  the  taxing  department  of  the 
State  Government.  The  State  Auditor,  in  person  or  by 
deputy,  shall  attend  and  take  part  in  such  district  conven- 
tions in  the  interest  of  his  office. 

15.  To  keep  a  record  of  all  its  proceedings; 

16.  To  report  biennially  to  the  Legislature  a  state- 
ment shovs^ing: 

The  amount  and  value  of  all  property  in  the  State  as 
classified  by  the  County  Assessment  Rolls  and  the  value 
of  each  class;  also  the  amount  and  value  of  all  property 
assessed  by  the  State  Board  of  Equalization  as  classified 
in  the  assessment  records  of  said  Board  and  the  value  of 
each  class; 

Its  recommendations,  in  form  for  enactment  into  law, 
for  changes  in  the  laws  of  the  State  pertaining  to  taxation ; 
and  it  is  hereby  made  the  duty  of  the  Board  to  investigate 
from  year  to  year  the  changes  in  the  taxation  laws  of 
other  states,  also  the  results  of  the  study  and  investiga- 
tion of  students  of  taxation  in  this  and  other  countries, 
and  to  collect  and  keep  for  reference  the  taxation  laws 
and  the  reports  of  tax  commissions  of  other  states,  and 
such  other  information  which  it  deems  necessary; 

Any  further  information  or  suggestion  relative  to 
the  assessment  of  property  and  the  collection  of  revenues; 

17.  To  reconvene,  whenever  it  may  deem  necessary, 
any  county  board  of  equalization;  and  it  may,  in  its  dis- 
cretion, extend  the  time  for  which  any  county  board  of 
equalization  may  sit  for  the  equalization  of  taxes.  The 
county  board  of  equalization,  when  thus  reconvened,  shall 
transact  no  business  except  that  for  which  it  was  recon- 
vened, or  such  other  business  as  the  State  Board  of  Equal- 
ization may  call  to  its  attention  while  in  session; 


189 

18.  To  call  upon  any  railroad  company  for  informa- 
tion as  to  the  private  car  companies  operating  over  its 
lines,  and  the  number  of  cars  hauled,  and  the  mileage 
made  by  same; 

19.  To  do  and  perform  every  act  and  thing  neces- 
sary to  a  complete  supervision  of  taxation  matters  in  this 
State,  including  power  to  order  a  re-assessment  of  any 
individual  assessment  in  any  county,  and  any  such  re- 
assessment or  any  original  assessment  made  by  order  of 
said  board  shall  be  legal  and  of  the  same  force  and  effect 
as  if  made  in  the  regular  course  of  procedure  for  assess- 
ment. 

252.  Every  person  served  with  a  subpoena  by  the 
State  Board  of  Equalization  or  by  any  member  thereof,  or 
by  any  person  directed  to  serve  said  subpoena,  who  fails 
or  neglects  without  just  cause  to  obey  it,  and  every  officer 
who  refuses  to  obey  the  rules  and  regulations  prescribed 
by  the  Board,  or  to  perform  the  duties  prescribed  therein, 
shall  forfeit  to  the  State  five  hundred  dollars  to  be  recov- 
ered by  an  action  in  the  name  of  the  State,  which  action 
may  be  commenced  and  tried  in  any  county  in  the  State. 

253.  Any  member  of  the  State  Board  of  Equaliza- 
tion or  the  secretary  thereof  may  administer  and  certify 
oaths. 


SETTLEMENTS  AND  REPORTS. 

254.  On  delivering  the  assessment  roll  to  the  county 
treasurer,  the  county  auditor  must  charge  the  treasurer 
with  the  full  amount  of  taxes  levied. 

255.  The  county  auditor  of  each  county,  between 
the  first  and  tenth  days  of  each  month  in  which  the  treas- 
urer of  his  county  is  required  to  settle  with  the  State 
Auditor,  must  make  in  triplicate  in  such  form  as  the  State 
Auditor  may  desire,  a  report  showing  specifically  the 
amount  due  the  State  from  each  particular  source  of  reve- 
nue at  the  close  of  business  on  the  last  day  of  the  preced- 
ing month. 


190 

256.  The  county  auditor  must  at  once  transmit  by 
mail  one  copy  of  the  report  to  the  State  Auditor,  one  copy 
to  the  State  Treasurer,  and  must  deliver  the  other  copy 
to  the  treasurer  of  his  county. 

257.  Every  county  auditor  who  fails  to  make  and 
transmit  any  report  or  statement  required  by  this  title 
shall  forfeit  three  months'  salary,  and  the  county  commis- 
sioners must  withhold  such  compensation. 

258.  The  treasurers  of  the  respective  counties  must, 
at  any  time  upon  the  order  of  the  State  Auditor  and  State 
Treasurer,  settle  with  the  State  Auditor  and  pay  over  to 
the  State  Treasurer  all  moneys  in  their  possession  belong- 
ing to  the  State,  and  must,  without  such  order,  settle  and 
pay  over  the  moneys  on  the  fifst  Monday  of  January, 
April,  October,  November  and  December  in  each  year. 

The  county  treasurers  shall,  immediately  after  the 
settlement  with  the  county  auditor  on  the  third  Monday  in 
February,  report  to  the  State  Auditor  a  full  statement  of 
taxes  collected  under  the  levies  of  the  preceding  year  to- 
gether with  a  statement  of  the  amount  of  taxes  being 
carried  by  the  county  in  tax  certificates,  and  such  other 
information  as  the  State  Auditor  may  require,  this  report 
to  be  made  on  blanks  furnished  by  the  State  Auditor.  At 
the  time  of  making  such  report,  they  shall  remit  to  the 
State  Treasurer  the  balance  due  the  State  as  shown  by 
such  report. 

259.  The  assessor,  on  the  first  Monday  of  each 
month,  must  make  a  settlement  with  the  county  auditor, 
and  must  pay  into  the  county  treasury  all  moneys  collected 
by  him  for  such  taxes  during  the  preceding  month. 

260.  It  shall  be  the  duty  of  the  county  treasurer  to 
pay  to  the  treasurer  of  each  city  and  incorporated  town 
in  the  county,  on  the  first  day  of  October  in  each  year,  and 
on  the  first  day  of  each  succeeding  month  until  final  set- 
tlement, all  mioneys  in  his  hands  collected  for  city  or  town 
taxes,  and  on  or  before  the  first  day  of  March  in  each  year 
to  make  final  settlement  with  the  treasurer  of  each  such 


191 

city  or  town  respecting  the  city  and  town  taxes  and  pay 
over  all  money  then  due  the  city  or  town.  The  county 
treasurer  shall  pay  over  to  the  treasurer  of  each  city  and 
town,  as  fast  as  collected  or  realized,  their  proportionate 
amount  of  delinquent  taxes,  interest,  and  costs  on  all  tax 
sales  and  redemptions  therefrom.  The  city  or  town  treas- 
urer shall  give  said  county  treasurer  duplicate  receipts  for 
each  payment,  and  the  county  treasurer  shall  give  one  to 
the  city  auditor,  city  recorder,  or  town  clerk,  as  the  case 
may  be,  and  the  other  shall  be  an  acquittance  to  such 
county  treasurer  in  settling  with  the  county  auditor  to  the 
extent  of  the  payment  shown. 

261.  The  county  treasurer  must,  annually  on  the 
third  Monday  of  February,  attend  at  the  office  of  the 
county  auditor  with  the  delinquent  list  and  the  assessment 
roll,  and  the  county  auditor  must  then  carefully  compare 
the  list  with  the  assessments  of  persons  and  property  not 
marked  as  paid  on  the  assessment  roll. 

262.  The  county  auditor  must  then  foot  up  the 
amount  of  taxes  remaining  unpaid,  and  credit  the  treas- 
urer with  the  amount,  and  have  a  final  settlement  with 
him,  and  thereafter  the  delinquent  list  must  remain  in  the 
county  auditor's  office. 

263.  Every  county  treasurer  who  neglects  or  refuses 
to  settle  or  make  payment  as  herein  required  shall  forfeit 
three  months'  salary,  and  upon  notice  of  the  State  Auditor 
to  the  county  commissioners  that  said  settlem^ent  has  not 
been  made,  the  county  commissioners  must  withhold  such 
compensation. 

264.  Every  assessor,  county  attorney,  and  county 
treasurer  must  annually,  on  the  first  Monday  in  January, 
make  a  settlement  with  the  county  auditor  of  all  transac- 
tions connected  with  the  revenue  for  the  previous  year, 
and  every  county  treasurer,  on  the  expiration  of  his  office, 
must  make  settlement. 

265.  County  officers  intrusted  with  the  assessment, 
collection,  or  custody  of  city  or  school  district  taxes,  and 


192 

their  sureties,  shall  be  liable  upon  their  official  bonds  for 
the  faithful  performance  of  their  duties  in  the  assessment, 
collection,  and  safe  keeping  of  said  city  and  school  district 
taxes. 

MISCELLANEOUS. 

266.  At  the  time  of  making  the  assessed  valuation 
notice  or  the  tax  notice,  or  at  any  time  before  the  15th  day 
of  September  in  each  year,  the  county  treasurer  shall  mail 
to  each  taxpayer  whose  address  appears  on  the  assessment 
roll,  a  notice  of  tax  sale  or  sales  of  any  year  within  four 
years  next  prior  to  the  date  of  such  notice  on  the  property 
or  any  part  thereof  described  in  the  notice  of  valuation  or 
tax  notice  from  which  sale  or  sales  the  said  property  or 
any  portion  thereof  remains  unredeemed  as  shown  by  the 
•records.  This  notice  may  be  incorporated  in  the  assessed 
valuation  notice  or  the  final  tax  notice  or  may  be  given 
in  a  separate  statement,  but  must  be  mailed  with  either 
the  assessed  valuation  notice  or  the  tax  notice. 

267.  It  shall  be  a  sufficient  description  in  any  assess- 
ment roll,  valuation  notice,  tax  notice,  tax  receipt,  publi- 
cation, tax  certificate,  complaint,  summons,  decree  or 
sheriff's  deed,  or  any  other  instrument  relating  to  the 
assessment,  levy  or  collection  of  taxes,  to  give  the  tax 
number  as' hereinbefore  provided  for,  together  with  the  lot 
and  block  or  section,  township  and  range  in  which  said 
property  is  situated,  and  no  description  so  made  shall  be 
held  void  for  uncertainty  when  the  provisions  of  this  sec- 
tion are  complied  with. 

268.  Any  taxes,  interest  and  costs  paid  more  than  once, 
erroneously,  or  illegally  collected  may  by  order  of  the  board 
of  county  commissioners  be  refunded  by  the  county  treas- 
urer, and  the  portion  of  such  taxes,  interest  and  cost  of 
the  state,  cities  and  school  districts,  must  be  refunded  to 
the  county,  and  the  proper  officer  must  draw  his  warrant 
therefor  in  favor  of  the  county;  provided,  that  the  board 
of  county  commissioners  upon  sufficient  evidence  being 
produced  that  property  has  been  erroneously  or  illegally 
assessed,  may  order  the  county  treasurer  to  allow  the  taxes 


193 

on  that  part  of  property  erroneously  or  illegally  assessed, 
to  be  deducted  before  payment  of  the  said  taxes. 

269.  The  State  Auditor,  as  well  as  any  member  of 
the  State  Board  of  Examiners,  or  any  person  designated 
by  said  Board,  may  examine  the  books  of  any  officer 
charged  with  the  collection  and  receipt  of  State  taxes. 

270.  If  on  examination  it  is  found  that  any  officer 
has  been  guilty  of  defrauding  the  State  of  revenue  or  has 
neglected  or  refused  to  perform  any  duty  relating  to 
revenue,  the  State  Auditor  may  direct  the  attorney  general 
to  prosecute  the  delinquent. 

271.  The  State  Board  of  Examiners  may  employ 
counsel  to  assist  in  such  prosecution,  and  the  expenses 
must  be  paid  out  of  the  State  treasury. 

272.  Omissions,  errors,  or  defects  in  form  in  the 
assessment  roll,  when  it  can  be  ascertained  therefrom 
what  was  intended,  may,  with  the  consent  of  the  county 
attorney,  be  supplied  or  corrected  by  the  assessor  at  any 
time  prior  to  the  sale  for  delinquent  taxes  and  after  the 
original   assessment  was   made. 

273.  When  the  omission,  error,  or  defect  has  been 
carried  into  a  delinquent  list  or  any  publication,  the  list 
or  publication  may  be  re-published  as  amended,  or  notice 
of  the  correction  may  be  given  in  a  supplementary  publi- 
cation. 

274.  The  publication  must  be  made  in  the  same  man- 
ner as  the  original  publication,  for  not  less  than  one  week. 

275.  In  the  assessment  of  land  or  the  advertisement 
and  sale  thereof  for  taxes,  initial  letters,  abbreviations, 
and  figures  may  be  used  to  designate  the  township,  range, 
section,  or  parts  of  section.  ^ 

276.  No  assessment  or  act  relating  to  assessment  or 
collection  of  taxes  is  illegal  on  account  of  informality  or 


la-TR 


194 

because  the  same  was  not  completed  within  the  time  re- 
quired by  law. 

277.  The  fines,  forfeitures,  and  penalties  incurred 
by  violation  of  any  of  the  provisions  of  this  Act  must  be 
paid  into  the  treasury  foi*  the  use  of  the  county  where  the 
person  against  whom  the  recovery  is  had  resides. 

278.  Chapter  66,  Laws  of  1911;  Title  80,  Laws  of 
1907  as  amended  by  Chapter  94,  Laws  of  1909;  Chapter 
63,  Laws  of  1909;  Chapter  117,  Laws  of  1909;  Chapter  90, 
Laws  of  1909;  Chapter  85,  Laws  of  1911;  Chapter  83, 
Laws  of  1911 ;  Chapter  116,  Laws  of  1911 ;  and  Chapter 
114,  Laws  of  1911,  are  hereby  repealed. 


195 


AN  ACT  PROVIDING  FOR  THE  FILING  OF  AFFIDA- 
VITS AS  TO  THE  TRUE  CONSIDERATION  IN 
INSTRUMENTS  AFFECTING  REAL  ESTATE, 
AND  DEFINING  THE  DUTIES  OF  THE  COUNTY 
RECORDER  AND  THE  STATE  BOARD  OF 
EQUALIZATION   WITH  REFERENCE   THERETO, 

Be  it  Enacted  by  the  Legislature  of  the  State  of  Utah : 

Section  1.  No  deed,  mortgage  or  other  instrument, 
other  than  a  decree  of  a  court  of  record  in  this  State,  af- 
fecting the  title  to  real  estate  shall  be  entitled  to  record 
unless  there  is  presented  with  it  to  the  county  recorder 
the  affidavit  of  the  grantor  and  grantee,  or  the  agent  or 
agents  of  either,  or  of  both  of  them  in  case  of  absence 
from  the  State  of  the  principals,  stating  that  the  consid- 
eration named  in  the  instrument  is  the  true  consideration 
for  the  transfer,  if  such  be  the  case,  and  if  not  then  stat- 
ing what  the  true  consideration  is,  and  if  all  or  any  por- 
tion of  the  consideration  is  other  real  estate  or  personal 
property  other  than  money,  or  evidences  of  indebtedness, 
then  stating  the  best  judgment  of  affiants  as  to  the  mar- 
ket value  of  such  property  so  taken  in  exchange. 

Sec.  2.  It  shall  be  the  duty  of  the  county  recorder  in 
his  certificate  of  record  to  certify  that  such  affidavit  has 
been  filed,  and  upon  its  receipt  by  the  county  recorder,  it 
must  be  promptly  transmitted  to  the  State  Board  of 
Equalization. 

Sec.  3.  The  State  Board  of  Equalization  shall  pre- 
serve such  affidavits,  and  the  same  shall  not  be  open  to 
the  inspection  of  the  public,  and  information  so  secured 
shall  be  tabulated  by  said  Board  in  a  book  or  books  kept 
for  that  purpose,  which  said  books  shall  not  be  open  to 
inspection  by  the  public. 

Sec.  4.  It  shall  be  the  duty  of  the  State  Board  of 
Equalization,  annually  on  or  before  the  first  Monday  in 
January  of  each  year,  to  transmit  to  the  county  assessor  of 
each  county,  a  tabulated  statement  of  the  information  so 
secured  for  his  county. 


196 

Sec.  5.  The  State  Treasurer,  or  any  person  desig- 
nated by  him,  charged  with  the  duty  of  collecting  the 
Inheritance  Tax,  shall  at  all  proper  and  reasonable  times 
have  access  to  the  information  conveyed  by  said  affidavits. 

Sec.  6.  Any  officer  having  the  custody  or  entitled 
to  access  to  such  affidavits  or  to  the  records  thereof,  who 
shall,  other  than  in  the  performance  of  his  official  duties, 
divulge  the  contents  of  any  such  affidavit  or  record  there- 
of, shall  be  deemed  guilty  of  a  misdemeanor  and  punished 
accordingly. 


197 


A  BILL  EXTENDING  THE  TERM  OF  OFFICE  OF 
COUNTY  TREASURERS  ELECTED  AT  THE  GEN- 
ERAL ELECTION  IN  THE  YEAR  1912,  AND  FIX- 
ING THE  DATE  OF  THE  COMMENCEMENT  AND 
EXPIRATION  OF  THE  TERMS  OF  COUNTY 
TREASURERS  TO  BE  ELECTED  THEREAFTER. 

Be  it  Enacted  by  the  Legislature  of  the  State  of  Utah: 

The  term  of  office  of  all  County  Treasurers  elected 
at  the  general  election  in  1912  is  hereby  extended  to 
twelve  o'clock  noon  on  the  first  Monday  in  March  in  the 
year  1915,  and  the  term  of  County  Treasurers  elected  in 
1914,  and  biennially  thereafter  shall  begin  at  twelve  o'clock 
noon  on  the  first  Monday  in  March  succeeding  their  elec- 
tion, and  continue  for  a  period  of  two  years,  and  until 
their  successors  are  elected  and  qualified. 


198 


AN  ACT  EXTENDING  THE  TERM  OF  OFFICE  OF 
COUNTY  ASSESSORS  ELECTED  AT  THE  GEN- 
ERAL ELECTION  IN  1912,  AND  CHANGING  THE 
TERM  OF  OFFICE  OF  ASSESSORS  SUBSE- 
QUENTLY ELECTED  FROM  TWO  TO  FOUR 
YEARS. 

Be  it  Enacted  by  the  Legislature  of  the  State  of  Utah: 

Section  1.  The  term  of  office  of  all  County  Assessors 
elected  at  the  general  election  in  1912  is  hereby  extended 
to  twelve  o'clock  noon  on  the  first  Monday  in  July,  A.  D. 
1915,  and  until  their  successors  are  elected  and  qualified. 

Sec.  2.  The  term  of  office  of  all  County  Assessors 
elected  at  the  general  election  in  1914,  and  quadrennially 
thereafter,  shall  begin  at  twelve  o'clock  noon  on  the  first 
Monday  in  July  succeeding  their  election,  and  shall  con- 
tinue for  a  period  of  four  years,  and  until  their  successors 
are  elected  and  qualified. 


199 


AN  ACT  TO  AMEND  SECTION  2057,  COMPILED 
LAWS  OF  UTAH,  1907,  AS  AMENDED  BY  CHAP- 
TER 79,  LAWS  OF  1911,  RELATING  TO  AND 
REGULATING  THE  SALARIES  OF  COUNTY 
OFFICERS. 

Be  it  Enacted  by  the  Legislature  of  the  State  of  Utah : 

That  Section  2057,  Compiled  Laws  of  Utah,  1907,  as 
amended  by  Chapter  79,  Laws  of  1911,  be  and  the  same 
is  hereby  amended  to  read  as  follows: 

2057.  The  salaries  of  the  officers,  of  all  counties  in 
the  State  shall  be  fixed  by  the  respective  Boards  of  County 
Commissioners  at  not  to  exceed  the  following  maximum 
amounts:  Provided,  that  should  the  respective  Boards  of 
County  Commissioners,  or  any  of  them  fail  to  fix  the 
salary  of  any  of  the  county  officers  as  provided  for  in  this 
Act,  the  salary  of  the  predecessor  of  said  officer  of  offi- 
cers whose  salary  has  not  been  fixed,  shall  apply. 

CLASS   1. 

Commissioners,   each     $2500 

Sheriff    7 3500 

Assessor    '.   3200 

Clerk .   3200 

Recorder    2650 

Treasurer    3300 

Attorney 3300 

Supt.  of  Schools   2000 

Surveyor 2000 

Auditor 2400 

CLASS  2. 

Commissioners,    each     $  700 

Sheriff    . 1800 

Assessor    1800 

Recorder    1800 

Clerk    1800 

Treasurer    1800 


200 

Attorney    ' igQO 

Supt.   of  Schools    1200 

Surveyor    1000 

CLASS  3. 

Commissioners,  each   $  600 

Sheriff 1500 

Assessor    1500 

Clerk 1500 

Recorder    .  .  . ,    1500 

Treasurer    1500 

Attorney 1500 

Supt.  of  Schools    1200 

Surveyor     ' 1000 

CLASS  4. 

Commissioners,    each $  500 

Sheriff    , 1500 

Assessor 1500 

Clerk 1500 

Recorder    ... 1500 

Treasurer    1500 

Attorney    1500 

Supt.  of  Schools    1000 

Surveyor    500 

CLASS  5. 

Commissioners,    each $  500 

Sheriff 1400 

Assessor    1400 

Clerk    1400 

Recorder 1150 

Treasurer 1400 

Attorney    1100 

Supt.  of  Schools   1000 

Surveyor    450 

CLASS  6. 

Commissioners,    each    $  450 

Sheriff    1300 


201 

Assessor 1300 

Clerk    1300 

Recorder    1100 

Treasurer    1300 

Attorney    1000 

Supt.  of  Schools    1000 

Surveyor    400 

CLASS  7. 

Commissioners,  each $  450 

Sheriff 1300 

Assessor 1300 

Clerk    1300 

Recorder    1050 

Treasurer 1300 

Attorney 1000 

Supt.  of  Schools    1000 

Surveyor    k 350 

CLASS  8. 

Commissioners,    each    $  450 

Sheriff    1300 

Assessor    1300 

Clerk    , 1300 

Recorder    T: 1000 

Treasurer 1300 

Attorney   1000 

Supt.  of  Schools    1000 

Surveyor    ...  350 

CLASS  9. 

Commissioners,    each $  300 

Sheriff    1250 

Assessor 1300 

Clerk    1300 

Recorder    1200 

Treasurer .  1000 

Attorney    800 

Supt.  of  Schools    1000 

Surveyor  350 


202 

CLASS  10. 

Commissioners,    each    $  300 

Sheriff    1250 

Assessor    1000 

Clerk    1000 

Recorder    1000 

Treasurer 900 

Attorney    800 

Supt.  of  Schools    .  . 1000 

Surveyor 350 

CLASS  11. 

Commissioners,    each    $  200 

Sheriff    1200 

Assessor    1200 

Clerk    1200 

Recorder    1200 

Treasurer 800 

Attorney    700 

Supt.  of  Schools    1000 

Surveyor 350 

CLASS  12. 

Commissioners,    each    $  200 

Sheriff    .  .  .- 1200 

Assessor    •  • 1000 

Clerk    1000 

Recorder     . *.     900 

Treasurer 600 

Attorney    600 

Supt.   of  Schools 1000 

Surveyor    . 350 

CLASS  13. 

Commissioners,    each    $  150 

Sheriff    800 

Assessor 800 

Clerk    800 

Recorder 750 

Treasurer  500 


203  ^ 

Attorney 500 

Supt.  of  Schools    750 

Surveyor    350 

CLASS  14. 

Commissioners,    each    $  100 

Sheriff    \  .  .  750 

Assessor    750 

Clerk    750 

Recorder    550 

Treasurer    400 

Attorney 400 

Supt.  of  Schools 500 

Surveyor 350 

CLASS  15. 

Commissioners,    each    $  100 

Sheriff   400 

Assessor 500 

Clerk    500 

Recorder    400 

Treasurer 250 

Attorney    300 

Supt.  of  Schools    500 

Surveyor   ^^ 350 


204 


AN  ACT  PROVIDING  FOR  A  LICENSE  TAX  AGAINST 
CORPORATIONS  ENGAGED  IN  COLLECTING 
AND  DISTRIBUTING  INFORMATION  RELATING 
TO  THE  FINANCIAL  STANDING  OF  MERCH- 
ANTS DOING  BUSINESS  WITHIN  THIS  STATE, 
AND  FIXING  THE  AMOUNT  OF  SUCH  ANNUAL 
LICENSE  TAX. 

Be  it  Enacted  by  the  Legislature  of  the  State  of  Utah: 

Section  1.  Every  corporation  engaged  in  the  busi- 
ness or  occupation  within  the  State  of  Utah  of  collecting 
and  imparting  to  others  information  respecting  the  finan- 
cial or  business  standing  of  persons,  firms  or  corporations 
engaged  in  the  mercantile  business  within  the  State  of 
Utah  shall  be  subject  to  an  annual  license  tax  of  two 
hundred  fifty  dollars. 

Sec.  2.  It  shall  be  the  duty  of  the  State  Treasurer, 
annually  on  or  before  the  first  Monday  in  March  in  each 
year,  to  notify  by  mail  each  corporation  liable  for  the  pay- 
ment of  the  license  tax  herein  provided,  which  notice  shall 
be  to  the  effect  that  said  tax  will  be  delinquent  at  twelve 
o'clock  noon  on  the  first  Monday  in  April  following;  that 
the  same  is  payable  to  the  State  Treasurer  at  his  office, 
and  if  not  paid  on  or  before  the  same  shall  be  delinquent, 
as  herein  provided,  that  a  penalty  equal  in  amount  to  the 
amount  of  the  tax  will  be  added  and  collected. 

Sec.  3.  It  shall  be  the  duty  of  each  corporation  liable 
for  the  payment  of  the  tax,  as  herein  provided,  to  pay  the 
amount  thereof  to  the  State  Treasurer  at  his  office  on  or 
before  twelve  o'clock  noon  of  the  first  Monday  in  April  of 
each  year,  and  failure  to  pay  the  same  on  or  before  said 
date  shall  subject  such  delinquent  corporation  to  the  pay- 
ment of  a  penalty  equal  in  amount  to  the  amount  of  the 
tax. 

Sec.  4.  It  shall  be  the  duty  of  the  State  Treasurer 
to  keep  in  his  office  a  record  of  the  names  and  places  of 
business  of  all  corporations  doing  businqss  in  this  State 
liable  for  the  payment  of  the  license  tax  provided  in  this 


205 

Act.  Said  record  shall  also  contain  columns  for  the 
amount  of  the  tax,  amount  of  penalty,  date  of  notifica- 
tion, and  date  of  payment.  The  entry  of  the  name  and 
place  where  such  corporation  is  doing  business  in  this 
State,  together  with  the  notice  hereinbefore  provided  for, 
and  the  entry  of  the  date  of  the  mailing  of  such  notifica- 
tion, shall  constitute  a  levy  of  the  said  license  tax. 

Sec.  5.  The  record  of  the  license  tax  herein  provided 
together  with  all  penalties  which  may  accrue  by  reason  of 
the  nonpayment  of  the  same  before  delinquent  shall  have 
the  force  and  effect  of  a  judgment  of  the  District  Court 
of  the  county  within  which  the  principal  place  of  business 
in  this  State  of  the  corporation  liable  for  the  tax  is  located. 

Sec.  6.  On  the  first  Tuesday  in  April  the  State 
Treasurer  shall  issue  a  general  execution  against  the  prop- 
erty of  any  corporation  liable  for  the  payment  of  the 
license  tax  and  penalty  herein  provided,  which  said  exe- 
cution shall  be  delivered  to  the  sheriff  of  the  county  in 
which  is  located  the  principal  place  of  business  in  this 
State  of  the  delinquent  corporation,  and  shall  be  served  in 
all  respects  in  like  manner  as  executions  on  judgments  of 
the  District  Court  of  said  county. 

Sec.  7.  The  sheriff  or  his  county  shall  make  no 
charge  for  the  service  of  any  execution  issued  in  accord- 
ance with  the  provisions  of  this  Act,  but  may  demand  ad- 
vances for  necessary  expenses  necessitated  by  a  levy  and 
sale  under  such  execution;  such  advances  to  be  accounted 
for,  and  any  unexpended  balance  to  be  returned  to  the 
State  Treasurer. 

Sec.  8.  All  moneys  collected  under  the  provisions  of 
this  Act  shall  be  paid  into  the  State  Treasury. 


206 


AN  ACT  REQUIRING  CERTAIN  CORPORATIONS 
OCCUPYING  PORTIONS  OF  THE  PUBLIC  HIGH- 
WAYS OF  THE  STATE  TO  CONTRIBUTE  THEIR 
PORTION  OF  SPECIAL  ASSESSMENTS  LEVIED 
FOR  THE  PURPOSE  OF  IMPROVING  SUCH 
HIGHWAYS. 

Be  it  Enacted  by  the  Legislature  of  the  State  of  Utah: 

Section  1.  Every  railroad,  street  railroad,  telegraph, 
gas,  power,  heat,  electric  light,  canal  or  water  company 
occupying  any  portion  of  any  of  the  public  streets  of  ^ny 
city  or  town,  or  of  the  public  highways  of  any  county  with- 
in this  State,  shall  be  liable  for  suQh  proportion  of  any 
special  assessment  hereafter  levied  for  the  improvement 
of  such  streets  or  highways,  either  for  paving,  curb  and 
guttering,  sidewalks  or  sewers,  as  the  assessed  value  of 
the  property  of  said  company  on  said  street  bears  to  the 
total  assessed  value  of  the  property  on  both  sides  of  said 
street,  and  the  property  of  other  companies  also  occupying 
said  street. 

Sec.  2.  The  valuation  for  the  purpose  of  assessing 
said  special  tax  shall  be  computed  by  blocks,  or  by  the 
portions  of  blocks  actually  occupied  by  said  companies  in 
cities  and  towns,  and  by  government  subdivisions,  or  such 
portions  of.  them  as  is  so  occupied  in  the  counties  outside 
of  cities  and  towns. 

Provided,  that  nothing  in  this  section  shall  be  so  con- 
strued as  to  exempt  street  railway  companies  from  exist- 
ing obligations  to  pave  between  their  tracks  and  for  two 
feet  on  each  side  thereof,  such  obligation  to  be  in  lieu  of 
any  further  assessment  against  such  corporation  for  such 
purpose. 


207 


AN  ACT  AMENDING  SECTION  511X40  OF  CHAPTER 
119,  LAWS  OF  UTAH  OF  1911,  DEFINING  THE 
POWERS  AND  DUTIES  OF  COUNTY  COMMIS- 
SIONERS AND  ELIMINATING  THEREFROM  ALL 
POWER  TO  LEVY  POLL  TAX  FOR  THE  MAIN- 
TENANCE AND  RELIEF  OF  THE  INDIGENT 
SICK  AND  DEPENDENT  POOR. 

Be  it  Enacted  by  the  Legislature  of  the  State  of  Utah: 

That  Section  511x40  of  Chapter  119,  Laws  of  1911, 
be  amended  to  read  as  follows: 

511x40.  To  provide  for  the  care,  maintenance,  and 
relief  of  all  indigent  sick  or  otherwise  dependent  poor  per- 
sons who  have  lawfully  settled  in  any  part  of  the  county, 
including  that  territory  or  portion  thereof  lying  within 
the  limits  of  any  incorporated  city  or  town  situated  in  said 
county;  and  it  is  hereby  made  the  duty  of  the  Board  to 
provide  such  care,  maintenance,  and  relief  for  the  indi- 
gent sick  and  dependent  poor  whether  found  within  or 
without  the  corporate  limits  of  such  incorporated  cities 
or  towns,  and  if  found  within  corporate  limits  of  such  in- 
corporated cities  or  towns,  to  observe,  in  caring  for  them, 
all  such  quarantine  rules  and  regulations,  as  may  be 
therein  prescribed;  and  in  its  discretion  to  erect,  officer 
and  maintain  such  hospitals,  poorhouses,  or  other  institu- 
tions'as  may  be  necessary  to  provide  for  the  same;  and 
for  such  purposes  to  levy  the  necessary  property  tax;  pro- 
vided, that  the  board  shall  appoint  (not  let  to  the  lowest 
bidder)  some  suitable  person  or  persons  to  take  care  of 
and  maintain  such  hospitals,  poorhouses,  or  other  institut- 
tions;  and,  provided  further,  that  the  board  shall  also 
appoint  (not  let  to  the  lowest  bidder)  some  suitable 
graduate  in  medicine  to  be  known  as  the  County  Physician 
and  in  counties  of  the  first  class  said  board  may  also  ap- 
point another  suitable  graduate  in  medicine  to  be  known 
as  the  assistant  County  Physician,  whose  duty  it  shall  be 
to  attend  and  prescribe  for  all  such  indigent  sick  and  de- 
pendent poor;  and  in  cases  where  indigents  are  sick  with 
a  contagious  disease  and  are  found  within  incorporated 
cities  or  towns,  to  observe,  in  caring  for  them  such  quar- 


208 

antine  rules  and  regulations  as  may  be  therein  prescribed; 
(and  said  Board  may  also  appoint  one  female  office  assist- 
ant to  said  County  Physician)  ;  provided  further,  that  in 
all  cases  where  an  indigent  person  sick  with  a  contagious 
disease,  is  quarantined  by  any  health  officer  of  any  city 
or  town,  and  in  all  cases  where  a  person  sick  with  a  con- 
tagious disease,  within  the  limits  of  an  incorporated  city 
or  town,  is  quarantined  by  any  city  or  town  health  officer 
and  rendered  dependent  by  reason  of  such  quarantine, 
then  in  that  case,  the  Board  of  County  Commissioners 
shall  only  be  responsible  for  the  care  and  maintenance .  of 
such  person  or  persons,  from  and  after  the  date  when 
they  shall  be  notified  of  the  establishment  of  such  quar- 
antine by  such  city  or  town  health  officers;  and  provided 
further,  that  from  the  time  of  the  receipt  of  such  notice 
of  the  quarantine  of  any  such  indigent  sick  or  dependent 
person,  the  Board  of  County  Commissioners  shall  have  the 
exclusive  care  and  control  of  the  maintenance  and  support 
of  such  person  and  the  expenditure  of  money  therefor. 


209 


AN  ACT  DEFINING  THE  POWERS  AND  DUTIES  OF 
THE  COUNTY  ROAD  COMMISSIONERS,  ELIMIN- 
ATING THEREFROM  ALL  PROVISIONS  RELA- 
TIVE TO  THE  COLLECTION  OF  POLL  TAX,  AND 
AMENDING  SECTION  4,  CHAPTER  118,  LAWS 
OF  1909,  AND  REPEALING  SECTIONS  6,  7,  8,  9, 
AND  10  OF  SAID  CHAPTER,  AND  SECTION  11, 
AS  AMENDED  BY  CHAPTER  38,  LAWS  OF  1911. 

Be  it  Enacted  by  the  Legislature  of  the  State  of  Utah: 

Section  1.  That  Section  4,  Chapter  118,  Laws  of 
1909,  be  and  the  same  is  hereby  amended  to  read  as  fol- 
lows: 

Section  4.  The  County  Road  Commissioner,  under 
the  direction  and  supervision  of  the  Board  of  County  Com- 
missioners, shall: 

1.  Take  charge  of  the  public  roads  within  the  county, 
and  employ  and  direct  such  competent  help  as  may  be 
necessary  to  properly  perform  his  duties. 

2.  Prepare  and  submit  to  the  county  commissioners 
for  their  approval  plans,  specifications  and  estimates  for 
any  road  construction  to  be  made  in  the  county  on  county 
roads.  After  the  approval  by  the  county  commissioners 
of  the  plans,  specifications  and  estimates  provided  herein, 
the  work  of  construction  growing  out  of  such  approved 
plans,  specifications  and  estimates  shall  be  wholly  within 
the  authority  of  the  County  Road  Commissioner. 

3.  May  assist  in  the  supervising  and  constructing  of 
State  roads  under  the  direction  and  control  of  the  State 
Road  Commission. 

4.  Keep  the  roads  clean  of  obstruction  and  in  good 
repair. 


14-TR 


210 

5.  Cause  the  roads  to  be  graded,  and  bridges  and 
causeways  to  be  built  wherever  necessary,  and  keep  the 
same  in  repair  and  renew  them  when  necessary. 

6.  Make  to  the  Board  of  County  Commissioners,  on 
or  before  the  first  Monday  in  December  of  each  year,  a 
written  report  showing: 

First.  The  amount  of  money  expended  in  each  pre- 
cinct and  a  detailed  description  of  improvements  made. 

Second.  A  general  description  of  the  condition  of  the 
public  roads  in  each  precinct. 

Third.  An  accurate  account  of  the  time  he,  himself, 
and  his  agents  have  been  employed,  and  the  nature  and 
items  of  the  service  rendered. 

Sec.  2.  Sections  6,  7,  8,  9  and  10  of  said  Chapter, 
and  Section  11  as  amended  by  Chapter  38,  Laws  of  1911, 
are  hereby  repealed. 


211 


AN  ACT  PROVIDING  FOR  A  LICENSE  TAX  AGAINST 
PERSONS,  FIRMS  OR  CORPORATIONS  EN- 
GAGED IN  LOANING  MONEY  ON  REAL  ESTATE, 
REGULATING  THE  AMOUNT  THEREOF  AC- 
CORDING TO  THE  AMOUNT  OF  BUSINESS 
DONE,  PROVIDING  FOR  REPORTS  TO  BE  FILED 
ANNUALLY  BY  THOSE  ENGAGED  IN  SUCH 
BUSINESS,  AND  PROVIDING  FOR  THE  COLLEC- 
TION OF  SUCH  LICENSE  TAX. 

Be  it  Enacted  by  the  Legislature  of  the  State  of  Utah: 

Section  1.  Every  person,  firm  or  corporation  engaged 
in  the  business  or  occupation  within  the  State  of  Utah  of 
loaning  money  on  real  estate  security,  either  as  principal, 
agent  or  broker,  shall  be  subject  to  an  annual  license  tax 
as  hereinafter  provided. 

Sec.  2.  The  amount  of  tax  to  be  paid  by  such  person, 
firm  or  corporation  shall  be  as  follows: 

1.  If  the  total  amount  of  loans  on  real  estate  within 
the  State  of  Utah  made  by  such  person,  firm  or  corpora- 
tion, shall  exceed  one  hundred  thousand  dollars  and  be  less 
than  t^vo  hundred  fifty  thousand  dollars,  one  hundred 
dollars  ;* 

2.  If  the  total  amount  of  loans  on  real  estate  within 
the  State  of  Utah  made  by  such  person,  firm  or  corpora- 
tion, shall  exceed  two  hundred  fifty  thousand  dollars  and 
be  less  than  five  hundred  thousand  dollars,  two  hundred 
fifty  dollars; 

3.  If  the  total  amount  of  loans  on  real  estate  within 
the  State  of  Utah  made  by  such  person,  firm  or  corpora- 
tion, shall  exceed  five  hundred  thousand  dollars,  five 
hundred  dollars. 

Sec.  3.  It  shall  be  the  duty  of  the  secretary  or  other 
responsible  official  of  each  corporation;  a  member  of  each 
firm;  and  of  each  individual  engaged  in  such  business, 
annually  on  or  before  the  second  Monday  in  January  of 


212 

each  year,  to  file  with  the  State  Treasurer  an  affidavit 
showing : 

1.  The  name  of  the  person  engaged  in  such  business, 
and  if  a  firm,  the  name  of  each  member  of  such  firm,  and 
if  a  corporation,  the  name  of  the  president,  secretary  and 
treasurer  thereof; 

2.  The  principal  place  of  business  within  the  State 
of  such  person,  firm  or  corporation; 

3.  An  itemized "  statement  of  the  loans  made  during 
the  preceding  calendar  year,  showing  the  name  of  the 
mortgagor  or  mortgagors,  the  description  of  the  property 
mortgaged,  and  the  amount  of  each  mortgage; 

4.  The  total  amount  of  loans  made; 

5.  Such  other  information  as  the  State  Treasurer 
may  require. 

Sec.  4.  In  the  event  that  any  person,  firm  or  corpor- 
ation engaged  in  such  business,  whether  they  have  done 
sufficient  business  during  the  preceding  year  to  make  them 
liable  for  the  payment  of  a  license  tax  or  not,  shall  fail, 
neglect  or  refuse  to  file  the  affidavit  hereinbefore  required 
with  the  State  Treasurer  at  the  time  herein  provided,  then 
the  State  Treasurer  shall  inform  himself  as  fully  as  may 
be  of  the  amount  of  business  done  by  such  defaulting  per- 
son, firm  or  corporation  during  the  preceding  year,  and 
to  that  end  he  shall  have  the  power  to  require  to  appear 
before  him  and  submit  to  an  examination  under  oath,  any 
person  connected  in  any  manner  with  any  such  business. 
After  ascertaining  as  nearly  as  may  be  the  amount  of  such 
annual  business  the  State  Treasurer  shall  assess  against 
such  defaulting  person,  firm  or  corporation  a  license  tax 
in  double  the  amount  that  would  be  required  under  this 
,act  for  the  amount  of  business  done  had  the  report  been 
made  as  herein  required,  and  the  license  tax  so  doubled 
shall  not  be  reduced  by  any  board  of  equalization. 

Sec.  5.  Any  person  failing  to  obey  the  order  of  the 
State  Treasurer  to  appear  and  testify  at  the  time  and 
place  required,  or  who  shall  fail,  neglect  or  refuse  to  pro- 


213 

duce  any  record  or  book  required  by  the  State  Treasurer, 
kept  by  such  person,  or  the  firm  or  corporation  with  which 
he  is  connected,  shall  be  subjected  to  a  fine  of  not  less 
than  one  hundred  dollars  or  more  than  five  hundred  dol- 
lars for  each  offense,  or  committed  to  the  county  jail  of 
the  county  in  which  the  principal  place  of  business  of  such 
person,  firm  or  corporation  is  located,  for  a  period  of  not 
less  than  fifteen  days  or  more  than  sixty  days,  or  be  pun- 
ished by  both  such  fine  and  imprisonment. 

Sec.  6.  It  shall  be  the  duty  of  the  county  attorney, 
upon  receipt  of  the  information  from  the  State  Treasurer 
that  any  person  has  violated  any  of  the  provisions  of  this 
Act,  for  the  violation  of  which  a  penalty  by  fine  or  im- 
prisonment or  both  is  imposed,  to  prosecute  such  person 
under  the  provisions  of  the  code  of  criminal  procedure. 

Sec.  7.  It  shall  be  the  duty  of  the  State  Treasurer 
annually  on  or  before  the  third  Monday  in  January  in 
each  year  to  notify  by  mail  each  person,  firm  or  corpora- 
tion liable  for  the  payment  of  the  license  tax  herein  pro- 
vided, of  the  amount  of  the  license  tax  due  from  such  per- 
son, firm  or  corporation  for  the  preceding  calendar  year, 
which  notice  shall  also  contain  statements  to  the  effect 
that  said  tax  will  be  delinquent  at  twelve  o'clock  noon  on 
the  second  Monday  in  February  following;  that  the  same 
is  payable  to  the  State  Treasurer  at  his  office,  and  if  not 
paid  on  or  before  the  same  shall  be  delinquent  as  herein 
provided,  that  a  penalty  equal  in  amount  to  the  amount  of 
the  tax  will  be  added  and  collected. 

Sec.  8.  It  shall  be  the  duty  of  the  State  Treasurer  to 
keep  a  record  of  the  names  and  places  of  business  of  all 
persons,  firms  or  corporations  doing  business  in  this  State 
liable  for  the  payment  of  the  license  tax  provided  in  this 
Act.  Said  record  shall  also  contain  columns  for  the 
amount  of  the  tax,  amount  of  penalty,  date  of  notification 
and  date  of  payment.  The  entry  of  the  name  and  place 
where  such  person,  firm  or  corporation  is  doing  business 
in  this  State,  together  with  the  notice  hereinbefore  pro- 
vided for,  and  the  entry  of  the  date  of  the  mailing  of  such 
notification  shall  constitute  a  valid  levy  of  such  license 
tax. 


^14 

Sec.  9.  It  shall  be  the  duty  of  each  person,  firm  or 
corporation  liable  for  the  payment  of  the  license  tax  as 
herein  provided  to  pay  the  amount  thereof  together  with 
any  penalties  that  may  have  been  added,  to  the  State 
Treasurer  at  his  office  on  or  before  noon  of  the  second 
Monday  in  February  of  each  year,  and  failure  to  pay  the 
same  on  or  before  said  date  shall  subject  such  delinquent 
person,  firm  or  corporation  to  the  payment  of  a  penalty 
equal  in  amount  to  the  amount  of  the  license  tax. 

Sec.  10.  The  record  of  the  license  tax  herein  pro- 
vided for  together  with  all  penalties  which  may  accrue  by 
reason  of  failure  to  file  a  report,  or  by  reason  of  failure  to 
pay  the  amount  of  such  tax  before  delinquent,  shall  have 
the  force  and  effect  of  a  judgment  of  the  District  Court 
of  the  county  within  which  the  principal  place  of  business 
in  this  State  of  the  person,  firm  or  corporation,  liable  for 
the  license  tax,  is  located. 

Sec.  11.  On  the  second  Tuesday  in  February,  the 
State  Treasurer  shall  issue  a  general  execution  against  the 
property  of  any  person,  firm  or  corporation  liable  for  the 
payment  of  the  license  tax  and  penalties  herein  provided, 
which  said  execution  shall  be  delivered  to  the  sheriff  of 
the  county  in  which  is  located  the  principal  place  of  busi- 
ness in  this  State  of  the  delinquent  person,  firm  or  cor- 
poration, and  shall  be  served  in  all  respects  in  like  manner 
as  executions  on  judgments  of  the  District  Court  of  said 
county. 

Sec.  12.  The  sheriff  or  his  county  shall  make 
no  charge  for  the  service  of  any  execution  issued  in  accord- 
ance with  the  provisions  of  this  act,  but  may  demand 
advances  for  necessary  expenses  necessitated  by  a  levy 
and  sale  under  such  execution;  such  advances  to  be 
accounted  for,  and  any  unexpended  balance  to  be  returned 
to  the  State  Treasurer. 

Sec.  13.  All  moneys  collected  under  the  provisions 
of  this  act  shall  be  paid  into  the  State  Treasury. 


215 


AN  ACT  PROVIDING  FOR  AN  INHERITANCE  TAX 
AND  REPEALING  TITLE  36,  COMPILED  LAWS 
OF  1907. 

Be  it  Enacted  by  the  Legislature  of  the  State  of  Utah: 

Section  1.  All  the  property  within  the  jurisdiction 
of  this  State  and  any  interest  therein,  whether  belonging 
to  the  inhabitants  of  this  State  or  not,  and  whether 
tangible  or  intangible,  which  shall  pass  by  will  or  by  the 
statutes  of  inheritance  of  this  or  any  other  state  or  by 
deed,  grant,  sale,  or  gift  made  or  intended  to  take 
effect  in  possession  or  enjoyment  after  the  death  of  the 
grantor  or  donor,  to  any  person  in  trust  or  otherwise, 
after  the  payment  of  all  debts,  shall  be  subject  to  a 
tax  as  hereinafter  provided. 

Sec.  2.  If  the  devisee,  legatee,  grantee  or  donee  be 
the  widow,  child  (lawful,  mutually  acknowledged  or 
legally  adopted),  husband,  minor  grand  child,  brother, 
sister,  widow  of  son  not  remarried,  father,  mother,  grand- 
father or  grandmother,  an  exemption  of  five  thousand 
dollars  shall  be  allowed;  if  the  estate  be  twenty-five 
thousand  dollars  or  less,  a  tax  of  one  per  cent  of  the 
'amount  above  the  exemption  shall  be  collected;  if  the 
estate  be  fifty  thousand  dollars  or  less,  and  more  than 
twenty-five  thousand  dollars,  a  tax  of  two  per  cent  of 
the  amount  above  the  exemption  shall  be  collected;  if 
the  estate  be  one  hundred  thousand  dollars  or  less,  and 
more  than  fifty  thousand  dollars,  a  tax  of  three  per 
cent  of  the  amount  above  the  exemption  shall  be  col- 
lected; if  the  estate  be  five  hundred  thousand  dollars  or 
less,  and  more  than  one  hundred  thousand  dollars,  a 
tax  of  four  per  cent  of  the  amount  above  the  exemption 
shall  be  collected ;  if  the  estate  be  more  than  five  hundred 
thousand  dollars,  a  tax  of  five  per  cent  of  the  amount 
above  the  exemption  shall  be  collected. 

Sec.  3.  If  the  devisee,  legatee,  grantee,  or  donee  be  any 
person  or  corporation  other  than  those  enumerated  in 
section    2    of    this    act,    an    exemption    of    one    thousand 


216 

dollars    shall    be    allowed,    and    a    tax    ot    five    per    cent 
of  the  amount  above  the  exemption  shall  be  collected. 

Sec.  4.  In  all  cases  where  the  devise,  bequest,  or 
donation  is  to  or  for  the  use  of  any  body  politic  or 
corporate,  public  library,  educational  institution,  or  other 
organization  in  this  State  whose  property  is  exempt  from 
taxation  under  the  Constitution  of  this  State  or  of  the 
United  States,  then  such  devise,  bequest,  or  donation 
shall  be  exempt  from  the  Inheritance  tax. 

Sec.  5.  The  exemption  herein  provided  for  shall  be 
applied  to  the  whole  estate  and  not  to  the  individual  be- 
quest, and  in  case  only  a  portion  of  the  estate  is  subject 
to  the  payment  of  an  inheritance  tax  within  this  State, 
then  the  exemption  to  be  allowed  on  the  property  within 
the  jurisdiction  of  this  State  shall  be  such  proportion 
of  the  amount  of  such  exemption  as  the  value  of  the 
property  subject  to  the  tax  bears  to  the  entire  estate. 

Sec.  6.  The  rate  herein  provided  for  as  applied  to 
the  individual  bequest  shall  be  the  rate  applicable  to  the 
entire  estate  under  the  particular  classification  whether 
the  entire  estate  is  subject  to  the  payment  of  the  tax 
within  this  State  or  not. 

Sec.  7-..  All  administrators,  executors  and  trustees, 
and  any  such  grantee  under  conveyance,  and  such  donee 
under  a  gift  made  during  the  grantor's  life,  shall  be 
respectively  liable  for  all  such  taxes  to  be  paid  by  them 
respectively,  except  as  herein  otherwise  provided,  with 
lawful  interest  as  hereinafter  set  forth,  until  the  same 
shall  have  been  paid.  The  tax  aforesaid  shall  be  and 
remain  a  lien  on  such  estate  from  the  death  of  the 
decedent  until  paid. 

Sec.  8.  All  property  which  shall  have  been  trans- 
ferred by  gift,  or  by  grant,  for  a  nominal  consideration, 
or  in  trust,  or  to  a  holding  corporation,  at  any  time  within 
five  years  prior  to  the  death  of  the  grantor  or  transferror, 
shall  conclusively  be  presumed  to  have  been  transferred  in 
anticipation  of  the  death  of  the  grantor  or  transferor. 


217 

Sec.  9.  It  shall  be  the  duty  of  the  secretary  of  all 
corporations,  incorporated  under  the  laws  of  this  State, 
to  report  to  the  State  Treasurer  on  or  before  the  15th 
day  of  March  of  each  year,  or  at  any  time  on  demand  of 
the  State  Treasurer,  the  stock  standing  in  the  name  of  non- 
resident decedents,  which  report  shall  include  the  number 
of  the  certificate,  the  number  of  shares  and  par  value 
thereof.  If  said  stock  has  been  transferred  within 
twelve  months  previous  to  the  time  required  for  this 
report,  then  the  secretary  shall  report  the  transferee  of 
said  stock,  which  shall  include  the  number  of  the  certifi- 
cate, the  number  of  shares,  and  the  par  value  thereof. 

Sec.  10.  It  shall  be  the  duty  of  the  State  Treasurer, 
or  his  duly  appointed  representative,  and  he  shall  have 
the  right  to  examine  the  records  of  domestic  corporations 
at  all  reasonable  times, .  to  inform  himself  concerning 
the  ownership  and  the  transfers  of  stock  in  any  corpora- 
tion incorporated  under  the  laws  of  this  State. 

Sec.  11.  The  term  "debts"  as  used  in  this  act,  shall 
include,  in  addition  to  debts  owing  by  the  decedent  at  the 
time  of  his  death,  the  local  or  state  taxes  due  from  the 
estate  prior  to  his  death,  a  reasonable  sum  for  funeral 
expenses,  the  court  costs,  all  sums  paid  to  attorneys  for 
services  in  settlement  of  the  estate,  the  cost  of  appraise- 
ment made  for  the  purpose  of  assessing  the  inheritance 
tax,  the  statutory  fees  of  executors,  administrators,  or 
trustees,  and  no  other  sum;  but  said  debts  shall  not  be 
deducted  unless  the  same  are  approved  and  allowed, 
within  fifteen  months  from  the  death  of  decedent,  as 
established  claims  against  the  estate,  unless  otherwise 
ordered  by  the  judge  of  the  proper  county. 

Sec.  12.  In  each  county  the  court  shall  annually 
appoint  three  competent  residents  and  freeholders  of  said 
county  to  act  as  appraisers  of  all  property  within  its 
jurisdiction,  which  is  charged  or  sought  to  be  charged 
with  an  inheritance  tax.  Said  appraisers  shall  serve 
for  one  year  and  until  their  successors  are  appointed  and 
qualified.  They  shall  each  take  an  oath  to  faithfully 
and    impartially   perform    the    duties    of    the    office,    but 


218 

shall  not  be  required  to  give  bond.  They  shall  be  subject 
to  removal  at  any  time  at  the  discretion  of  the  court, 
and  the  court,  or  judge  thereof  in  vacation,  may  also  at 
its  discretion,  either  before  or  after  the  appointment  of 
the  regular  appraisers,  appoint  other  appraisers  to  act 
in  any  given  case.  Vacancies  occurring  otherwise  than 
by  expiration  of  term  shall  be  filled  by  the  appointment 
of  the  court,  or  by  a  judge  in  vacation. 

Sec.  13.  Any  appraiser  appointed  under  this  Act 
who  shall  take  any  fee  or  reward  from  any  executor, 
administrator,  trustee,  legatee,  next  of  kin  or  heir  of 
any  decedent,  or  from  any  other  person  liable  to  pay 
said  tax  or  any  portion  thereof,  shall  be  guilty  of  a 
misdemeanor,  and,  upon  conviction  in  any  court  having 
jurisdiction  of  misdemeanors,  he  shall  be  fined  not  less 
than  two  hundred  fifty  dollars  nor  more  than  five  hundred 
dollars,  and  imprisoned  not  exceeding  ninety  days,  and  in 
addition  thereto  the  judge  shall  dismiss  him  from  such 
service. 

Sec.  14.  When  an  estate  is  opened  in  which  there 
is  property  which  may  be  subject  to  the  inheritance  tax, 
the  clerk  shall  forthwith  issue  a  commission  to  the 
appraisers,  who  shall  fix  a  time  and  place  for  appraise- 
ment. 

Sec.  15.  It  shall  be  the  duty  of  all  appraisers  appoint- 
ed under  the  provisions  of  this  Act  to  forthwith  give 
notice  to  the  State  Treasurer  and  other  persons  known 
to  be  interested  in  the  property  to  be  appraised,  of  the 
time  and  place  at  which  they  will  appraise  such  property, 
which  time  shall  not  be  less  than  ten  days  from  the 
date  of  such  notice.  The  notice  shall  be  served  in  the 
same  manner  as  is  prescribed  for  the  commencement  of 
civil  actions,  and  if  not  practicable  to  serve  the  notice 
provided  for  by  the  statute,  they  shall  apply  to  the  court 
or  a  judge  in  vacation  for  an  order  as  to  notice,  and  upon 
service  of  such  notice  and  the  making  of  such  appraise- 
ment, the  said  notice,  return  thereon,  and  appraisement 
shall  be  filed  with  the  clerk,  and  a  copy  of  such  appraise- 
ment shall  be  filed  by  the  clerk  with  the  State  Treasurer. 


219 

Sec.  16.  The  state  treasurer  or  any  person  interested 
in  the  estate  appraised  may,  within  twenty  days  there- 
after, file  objections  to  said  appraisement,  on  the  hearing 
of  which  as  an  action  in  equity,  either  party  may  produce 
evidence  competent  or  material  to  the  matters  therein 
involved.  If,  upon  such  hearing,  the  court  finds  the  amount 
at  which  the  property  is  appraised  to  be  its  value  on 
the  market  in  the  ordinary  course  of  trade,  and  the 
appraisement  was  fairly  and  in  good  faith  made,  it  shall 
approve  such  appraisement;  but  if  it  finds  that  the 
appraisement  was  made  at  a  greater  or  less  sum  than 
the  value  of  the  property  in  the  ordinary  course  of 
trade,  or  that  the  same  was  not  fairly  or  in  good  faith 
made,  it  shall  set  aside  the  appraisement,  appoint  new 
appraisers,  and  so  proceed  until  a  fair  and  good  appraise- 
ment of  the  property  is  made  at  its  value  in, the  market 
in  the  ordinary  course  of  trade.  The  state  treasurer 
or  anyone  interested  in  the  property  appraised,  may  appeal 
to  the  supreme  court  from  the  order  of  the  district 
court  approving  or  setting  aside  any  appraisement  to 
which  exceptions  have  been  failed.  Notice  of  appeal 
shall  be  filed  within  thirty  days  from  the  date  of  the 
order  appealed  from,  and  the  appeal  shall  be  perfected 
in  the  time  now  provided  for  appeals  in  equitable  actions. 
In  case  of  appeal,  the  appellant,  if  he  is  not  the  state 
treasurer  shall  give  bond  to  be  approved  by  the  clerk 
of  the  court,  to  pay  the  tax,  which  bond  shall  provide 
that  the  said  appellant  and  sureties  shall  pay  the  tax  for 
which  the  property  may  be  liable,  with  cost  of  appeal. 
If  upon  the  hearing  of  objections  to  the  appraisement, 
the  court  finds  that  the  property  is  not  subject  to  the 
tax,  the  court  shall  upon  expiration  of  the  time  for  appeal, 
when  no  appeal  has  been  taken,  order  the  clerk  to  enter 
upon  the  lien  book  a  cancellation  of  any  claim  or  lien 
for  taxes.  If  at  the  end  of  twenty  days  from  the  filing 
of  the  appraisement  with  the  clerk,  no  objections  are 
filed  the  appraisement  shall  stand  approved. 

Sec.  17.  In  all  cases  where  the  property  of  an  estate 
has  been  subject  to  or  liable  for  the  payment  of  the 
tax  provided  in  this  Act  or  where  such  property  has 
heretofore  been  appraised  and  the  tax  not  yet  paid,  and 


220 

the  notice  required  in  this  act  was  not  given,  it  shall 
be  the  duty  of  the  court,  immediately  upon  the  taking 
effect  of  this  act,  to  enforce  such  tax,  or  to  set  aside  any 
appraisement  heretofore  made,  and  order  a  reappraisement 
of  the  same  to  be  made  as  in  this  act  provided,  anything  in 
the  law  contrary  notwithstanding. 

Sec.  18.  All  of  the  property  of  the  decedent  subject 
to  such  tax  shall,  except  as  hereinafter  provided,  be 
appraised  within  thirty  days  next  after  the  appointment 
of  an  executor,  administrator,  or  trustee,  at  its  market 
value  in  the  ordinary  course  of  trade,  and  the  tax 
thereon,  calculated  upon  the  appraised  market  value  after 
deducting  debts  for  which  the  estate  is  liable,  shall  be 
paid  by  the  persons  entitled  to  said  estate  within  fifteen 
months  from,  the  death  of  the  testator  or  intestate,  unless 
a  longer  period  is  fixed  by  the  court,  and,  in  default 
thereof,  the  court  shall  order  the  same,  or  so  much  thereof 
as  may  be  necessary  to  pay  such  tax,  to  be  sold. 

Sec.  19.  Whenever  any  real  estate  of  a  decedent 
shall  be  subject  to  such  tax,  and  there  be  a  life  estate  or 
interest  for  a  term  of  years  given  to  one  party  or  parties, 
the  court  shall  direct  the  interest  of  the  life  ^  estate,  or 
term  of  years,  to  be  appraised  at  its  market  value  in  the 
ordinary  course  of  trade,  and,  upon  the  approval  of  such 
appraisement,  by  the  court,  the  party  entitled  to  such  life 
estate,  or  term  of  years,  shall,  within  sixty  days  there- 
after, pay  such  tax,  and  in  default  thereof  the  court 
shall  order  such  interest  in  said  estate,  or  so  much  thereof 
as  shall  be  necessary  to  pay  such  tax,  to  be  sold.  Upon 
the  determination  of  such  life  estate,  or  term  of  years, 
the  court  shall,  upon  its  own  motion,  or  upon  the  applica- 
tion of  the  state  treasurer,  cause  such  estate  to  be  ap- 
praised at  its  market  value  in  the  ordinary  course  of 
trade,  from  which  shall  be  deducted  the  value  of  any 
improvements  thereon,  or  betterments  thereto,  if  any, 
made  by  the  remainder  man  during  the  time  of  the  prior 
estate,  to  be  ascertained  and  determined  by  the  appraisers, 
and  the  tax  on  the  remainder  shall  be  paid  by  such 
remainder  man  within  sixty  days  from  the  approval  by 
the   court   of   the   appraisers.      If   such   tax   is   not   paid 


221 

within   said   time,   the   court   shall   then   order   said   real 

estate,  or  so  much  thereof  as  shall  be  necessary  to  pay 

such  tax,  to  be  sold.     Whenever  any  personal  estate  of 

a  decedent  shall  be  subject  to  such  tax  and  there  be  a 

life  estate  or  interest  for  a  term  of  years  given  to  one 

party  or  parties,  and  the  remainder  to  another  party  or 

parties,    the    court    shall     inquire    into    and    determine 

the   market   value    in   the   ordinary   course    of   trade,    of 

the   life   estate  or   interest   for   the   term   of   years,   and 

order  and   direct  the   amount  of  the  tax  thereon  to  be 

paid    by   the   prior   estate   and   that   to    be   paid   by   the 

remainder  man,  each  of  whom  shall  pay  his  proportion 

of  the  tax   within   sixty   days   from   such   determination, 

unless   a   longer   period    is   fixed   by   the    court,    and,    in 

default   thereof,   the    executor,    administrator,    or   trustee 

shall  pay  the   same   out  of   said   property   and   hold  the 

same  from  distribution,  and  invest  it  at   interest   under 

the   order   of  the  court  until   said   tax   is  paid,   or   until 

the    interest    on    the    same    equals    the    amount    of    such 

tax,  which  shall  thereupon  be  paid. 

Sec.  20.  Whenever  a  decedent  appoints  one  or  more 
executors  or  trustees  and  in  lieu  of  his  or  their  allowance 
or  commission  makes  a  bequest  or  devise  of  property  to 
him  or  them,  which  would  otherwise  be  liable  to  said 
tax,  or  appoints  them  as  residuary  legates,  and  said 
bequests,  devises,  or  residuary  legacies  exceed  what  would 
be  a  reasonable  compensation  for  his  or  their  services, 
such  excess  shall  be  liable  to  such  tax,  and  the  court 
having  jurisdiction  of  his  or  their  accounts,  upon  its 
own  motion  or  on  the  application  of  the  state  treasurer, 
shall  fix  such  compensation. 

Sec.  21.  Whenever  any  legacies  subject  to  said  tax 
are  charged  upon  or  payable  out  of  any  real  estate, 
the  heir  or  devisee,  before  paying  the  same,  shall  deduct 
said  tax  therefrom  any  pay  it  to  the  executor,  adminis- 
trator, trustee,  or  state  treasurer,  and  the  same  shall 
remain  a  charge  and  be  a  lien  upon  said  real  estate 
until  it  is  paid;  and  payment  thereof  shall  be  enforced 
by  the  executor,  administrator,  trustee,  or  state  treasurer 
in  his  name  of  office,  in  the  same  manner  as  the  payment 
of  the  legacy  itself  could  be  enforced. 


222 

Sec.  22.  Every  executor,  administrator  or  trustee, 
having  in  charge  or  trust  any  property  subject  to  said 
tax,  and  which  is  made  payable  to  him,  shall  deduct  the 
tax  therefrom,  or  shall  collect  the  tax  thereon  from  the 
legatee  or  person  entitled  to  said  property,  and  he  shall 
not  deliver  any  specific  legacy  or  property  subject  to 
said  tax  to  any  person  until  he  has  collected  the  tax 
thereon. 

Sec.  23.  All  taxes  imposed  under  the  provisions  of 
this  act  shall  be  payable  to  the  state  treasurer,  and  those 
which  are  made  payable  by  executors,  administrators,  or 
trustees,  shall  be  paid  within  fifteen  months  from  the 
death  of  the  testator  or  intestate,  unless  a  longer  period 
is  fixed  by  the  court,  or  a  judge  thereof  in  vacation. 
All  taxes  not  paid  within  fifteen  months  from  death 
of  the  testator  or  intestate  shall  draw  interest  at  the 
rate  of  eight  per  cent  per  annum  until  paid. 

Sec.  24.  It  is  hereby  made  the  duty  of  all  executors, 
administrators,  or  trustees,  charged  with  the  management 
or  settlement  of  any  estate  subject  to  the  tax  provided  for 
in  this  act,  to  collect  and  pay  to  the  state  treasurer  the 
amount  of  the  tax  due  from  any  devisee,  legatee,  grantee,  or 
donee  of  the  decedent,  except  in  cases  falling  under  the 
provisions  of  section  19  of  this  act,  in  which  cases  the 
state  treasurer  shall  collect  the  same.  Applications  may 
be  made  to  the  district  court  by  such  executor,  adminis- 
trator, trustee  or  state  treasurer  to  sell  the  real  estate 
subject  to  said  tax  in  an  equitable  action,  or,  if  made 
to  the  court  having  charge  of  the  settlement  of  the 
estate,  the  procedings  shall  conform  as  nearly  as  may 
be  to  those  for  the  sale  of  real  estate  of  decedent  for 
the  settlement  of  his  debts. 

Sec.  25.  No  final  settlement  of  the  account  of  any 
executor,  administrator,  or  trustee  shall  be  accepted  or 
allowed  unless  it  shall  show,  and  the  court  shall  find, 
that  all  taxes  imposed  by  the  provisions  of  this  title  upon 
any  property  or  interest  therein  belonging  to  the  estate 
to  be  paid  by  such  executors,  administrators,  or  trustees, 
and  to  be  settled  by  said  account,   shall  have  been  paid 


223 

and    the    receipt    of    the    state    treasurer    for    such    tax 
shall   be  the  proper  voucher   for   such   payment. 

Sec.  26.  The  district  court  having  either  principal 
or  ancillary  jurisdiction  of  the  settlement  of  the  estate 
of  the  decedent  shall  have  jurisdiction  to  hear  and  de- 
termine all  questions  in  relation  to  said  tax  that  may  arise 
affecting  any  devise,  legacy,  or  inheritance,  or  any  grant 
or  gift,  under  this  title,  subject  to  appeal  as  in  other 
cases,  and  the  state  treasurer  shall  in  his  name  of  office 
represent  the   interests   of  the   state  in   any  proceedings. 

Sec.  27.  Before  issuing  his  receipt  for  the  tax,  the 
state  treasurer  may  demand  from  executors,  administrat- 
ors, or  trustees,  such  information  as  may  be  necessary  to 
verify  the  correctness  of  the  amount  of  the  tax  and 
interest,  and,  when  demanded,  .they  shall  send  such 
treasurer  certified  copies  of  such  parts  of  their  reports 
as  he  may  demand,  and  upon  the  refusal  of  said  parties 
to  comply  with  the  demand  of  the  state  treasurer,  it 
is  the  duty  of  the  clerk  of  the  court  to  comply  with 
such  demand,  and  the  expense  of  making  such  copies 
and  transcripts  shall  be  charged  against  the  estate,  as 
are  other  costs  in  probate. 

Sec.  28.  The  clerk  of  the  district  court  in  and  for 
each  county,  where  an  inheritance  tax  is  charged  or 
sought  to  be  charged,  shall  provide  and  keep  a  suitable 
book,  substantially  bound  and  suitably  ruled,  to  be  known 
as  the  inheritance  tax  and  lien  book,  in  which  shall  be 
kept  a  full  and  accurate  record  of  all  proceedings  in 
cases  where  property  is  charged,  or  sought  to  be  charged 
with  the  payment  of  an  inheritance  tax  under  the  laws 
of  this  state,  to  be  printed  and  ruled  so  as  to  show 
upon  one  page: 

1.  The  name,  place  of  residence,  and  date  of  death 
of  the  decedent ; 

2.  Whether  the  decedent  died  testate,  or  intestate, 
and  if  testate,  the  record  and  page  where  the  will  was 
probated  and   recorded; 


224 

3.  The  name  and  post  office  address  of  the  executor, 
administrator,  trustee  or  grantee,  with  the  date  of  appoint- 
ment or  transfer ; 

4.  The  names,  post  office  addresses,  and  relation- 
ship, if  known,  of  all  the  heirs,  devisees,  and  grantees; 

5.  The  appraised  valuation  of  the  personal  property; 

6.  The  amount  of  inheritance  tax  due  upon  said 
personal  property; 

7.  A  record  of  payment  with  amount  and  date; 

8.  Date  of  filing  objections  and  names  of  objectors; 

9.  Blank  for  index  and  reference  to  all  proceedings, 
and  for  memorandum  entries  of  the  court  or  judge  in 
relation  thereto. 

Upon  the  opposite  page  of  such  record  shall  be 
printed : 

1.  Real  estate  from  (naming  decedent)  which  is 
subject  to  the  lien  prescribed  by  the  statute  for  inheri- 
tance tax. 

2.  A  full  and  accurate  description  of  such  real 
estate,  by  forty  acre  or  fractional  tracts,  or  by  lots,  or 
other  complete  individual  description; 

3.  The  appraised  valuation  as  reported  by  the 
appraisers,  with  a  reference  to  the  record  of  their  report, 
as  to  each  piece  of  such  real  estate; 

4.  The  amount  of  inheritance  tax  due  upon  each 
such  piece; 

5.  A  record  of  payments,  with  dates  and  amounts; 

6.  Date  of  filing  objections,  and  names  of  objectors; 

7.  Blank  for  iYidex  and  reference  and  to  all  pro- 
ceedings, and  for  memorandum  entries  of  court  or  judge 
in  relation  thereto. 


225 

Sec.  29.  Upon  the  appointment  and  qualification  of 
each  executor,  administrator  and  testamentary  trustee,  the 
clerk  issuing  the  letters  shall  at  the  same  time  deliver 
to  him  a  blank  form  upon  which  he  shall  be  required  to 
make   detailed   report   of  the   following   facts: 

1.  Name  and  last  residence  of  the  decedent; 

2.  Date  of  death; 

3.  Whether  or  not  he  left  a  will; 

4.  Name  and  post  office  address  of  executor,   ad- 
ministrator or  trustee; 

5.  Name  and  post  office  address  of  surviving  wife 
or  husband,  if  any; 

6.  If  testate,  name  and  post  office  of  each  benefi- 
ciary under  the  will; 

7.  Relationship  of  each  beneficiary  to  the  testator ; 

8.  If  intestate,  name  and  post  office  address  of 
each  heir  at  law; 

9.     Relationship    of    each    heir    at    law    to    the    de- 
cedent ; 

10.  Inventory  of  all  real  estate  of  the  decedent, 
giving  amount  and  description  of  each  tract.  Within 
ten  days  after  his  qualification,  each  executor,  adminis- 
trator, and  testamentary  trustee  shall  make  and  return 
to  the  clerk,  under  oath,  a  full  and  detailed  report  as 
indicated  in  the  preceding  section,  any  will  to  the  contrary 
notwithstanding,  and  upon  his  failure  to  do  so,  the  clerk 
shall  forthwith  report  his  delinquency  to  the  district 
court  if  in  session,  or  to  a  judge  of  said  court  if  in 
vacation,  for  such  order  as  may  be  necessary  to  enforce 
an  observance  of  this  section.  If  it  appears  from  the 
inventory  or  report  so  filed  that  the  real  estate,  or  any 
part  of  it,  is  subject  to  an  inheritance  tax,  it  shall 
be  the  duty  of  the  executor  or  administrator  to  cause  the 
lien  of  the  same  to  be  entered  upon  the  lien  book  in 
the  office  of  the  clerk  of  the  court  in  each  county  where 
each  particular  tract  of  said  real  estate  is  situated,  and 
no    conveyance   of    said    real    estate    or    interest   therein, 

15-TR 


226 

which  is  subject  to  such  tax  before  or  after  entering 
of  said .  lien,  shall  discharge  the  real  estate  so  conveyed 
from  the  operation  thereof,  and  no  final  settlement  of 
the  account  of  any  executor,  administrator,  or  trustee, 
shall  be  accepted  or  allowed  unless  a  strict  compliance 
with  the  provisionjs  of  this  section  has  been  had  by  such 
person. 

Sec.  30.  Whenever,  by  reason  of  the  complicated 
nature  of  an  estate,  or  by  reason  of  the  confused  con- 
dition of  the  decedent's  affairs,  it  is  impracticable  for 
the  executor,  administrator,  or  trustee  or  beneficiary  of 
said  estate  to  file  with  the  clerk  of  the  court  a  full, 
complete,  and  itemized  inventory  of  the  personal  assets 
belonging  to  the  estate,  within  the  time  required  by 
statute  for  filing  inventories  of  the  estate,  the  court 
may,  upon  the  application  of  such  representatives  or 
parties  in  interest,  extend  the  time  for  making  of  the 
inheritance  appraisement  for  a  period  not  to  exceed  three 
months  beyond  the  time  fixed  by  law. 

Sec.  31.  The  clerk  shall  from  time  to  time  enter 
upon  the  inheritance  tax  and  lien  book,  the  title  of  all 
estates  subject  to  the  inheritance  tax,  as  shown  by  the 
inventories  or-  lists  of  heirs  filed  in  his  office,  or  as 
reported  to  him  by  the  district  attorney  or  the  state 
treasurer,  and  shall  enter  in  said  book  as  against  each 
estate  or  title,  at  the  appropriate  place,  all  such  infor- 
mation relating  to  the  situation  and  condition  of  the 
estate  as  he  may  be  able  to  obtain  from  the  papers  filed 
in  his  office,  or  from  the  district  attorney  or  the  state 
treasurer,  as  may  be  necessary  to  collection  and  enforce- 
ment of  the  tax.  He  shall  also  immediately  index  all 
liens  entered  upon  the  inheritance  tax  and  lien  book  in 
the  book  kept  in  his  office  for  that  purpose. 

:  Sec.  32.  In  all  cases  entered  upon  the  inheritance 
tax  and  lien  book,  the  clerk  shall  make  a  complete  record 
in  the  proper  probate  record,  of  all  the  proceedings,  orders, 
reports,  inventories,  appraisements  and  all  other  matters 
and  proceedings  therein. 


227 

Sec.  33.  It  shall  be  the  duty  of  each  clerk  of  the 
district  court  to  make  examination  from  time  to  time 
of  all  reports  filed  with  him  by  administrators,  executors,?, 
and  trustees,  pursuant  to  law;  also  to  make  examination' 
of  all  foreign  wills  offered  for  probate  or  recorded  within 
his  county,  as  well  as  of  the  record  of  deeds  and  convey- 
ances in  the  recorder's  office  of  said  county,  and  if 
from  such  examination,  or  from  information  or  knowledge 
coming  to  him  from  any  other  source,  he  finds  or 
believes  that  any  property  within  his  county,  or  within 
the  jurisdiction  of  the  district  court  of  said  county,  has, 
since  May  14th,  1901,  passed  by  will  or  by  the  interstate 
laws  of  this  or  any  other  state,  or  by  deed,  grant,  sale, 
or  gift  made  or  intended  to  take  effect,  in  possession 
or  enjoyment  after  the '  death  of  the  testator,  donor,  or 
grantor,  to  any  person  within  this  state,  he  shall  make 
report  thereof  in  writing  to  the  State  Treasurer,  embody- 
ing in  such  report  the  name  and  residence  of  the  decedent, 
date  of  death,  name  and  address  of  administrator,  executor/ 
or  trustee;  the  description  of  any  property  liable  to 
a  tax  and  the  county  in  which  it  is  located,  and  name 
and  relationship  of  all  beneficiaries  or  heirs.  Any  citizen 
of  the  state,  having  knowledge  of  property  liable  to  such 
tax,  against  which  no  proceedings  for  enforcing  collection 
thereof  is  pending,  may  report  the  same  to  the  clerk,  and 
it  shall  be  the  duty  of  such  officer  to  investigate  the 
case,  and  if  he  has  reason  to  believe  the  information  to' 
be  true,  he  shall  forthwith  institute  such  proceedings 
substantially  as  above  indicated. 

Sec.  34.  On  the  first  or  second  day  of  each  regular 
term,  the  court  shall  require  the  clerk  to  present  for 
its  inspection,  the  inheritance  tax  and  lien  book  herein- 
before provided  for,  together  with  all  reports  of  adminis- 
trators, executors,  and  trustees  which  have  been  filed 
pursuant  to  this  title  since  the  last  preceding  term.  The 
district  attorney  shall  also  attend  and  make  report  to 
the  court  concerning  the  progress  of  all  cases,  pending 
for  the  collection  of  such  taxes,  together  with  any  other 
facts  which  in  his  judgment,  may  aid  the  court  in 
enforcing  the  general  observance  of  the  inheritance  tax 
law.      If    from    information    obtained    from    the    records 


228 

or  reports,  or  from  any  other  source,  the  court  has  reason 
to  believe  that  there  is  property  within  its  jurisdiction 
liable  to  the  payment  of  an  inheritance  tax,  against  which 
proceedings  for  collection  are  not  already  pending,  it  shall 
enter  an  order  of  record,  directing  the  district  attorney 
to  institute  such  proceedings  forthwith.  Should  any 
estate,  or  the  name  of  any  grantee  or  grantees,  be  placed 
upon  the  book  at  the  suggestion  of  the  district  attorney 
or  the  state  treasurer  in  which  the  papers  already  on 
file  in  the  clerk's  office  do  not  disclose  that  any-  inheri- 
tance tax  is  due  or  payable,  the  district  attorney  shall 
forthwith  give  to  all  parties  in  interest  such  notice  as  the 
court  or  judge  may  prescribe,  requiring  them  to  appear 
on  a  day  to  be  fixed  by  the  said  court  or  judge,  and 
show  cause  why  the  property  should  not  be  appraised  and 
subjected  to  said  tax.  If  upon  hearing  at  the  time  so 
fixed,  the  court  is  satisfied  that  any  property  of  the  de- 
cedent, or  any  property  devised,  granted,  or  donated  by 
him,  is  subject  to  the  tax,  the  same  proceedings  shall  be 
had  as  in  other  cases,  so  far  as  applicable. 

Sec.  35.  In  all  cases  where  any  property  so  passes 
as  to  be  liable  to  taxation  under  the  inheritance  law, 
all  costs  of  the  proceedings  had  for  determining  the 
amount  of  such  tax  or  for  determining  whether  the 
property  of  the  entire  estate  is  sufficient  in  amount  as 
to  render  that  part  passing  to  heirs  subject  to  the  tax, 
shall  be  chargeable  to  such  estate,  and  to  discharge  the 
lien  upon  such  property  all  costs,  as  well  as  the  taxes 
must  be  paid.  In  all  other  cases  the  costs  are  to  be 
paid  by  the  State,  and  when  a  decision  adverse  to  the 
state  has  been  rendered,  with  an  order  that  the  state 
pay  the  costs,  it  is  the  duty  of  the  clerk  of  the  court 
in  which  such  action  was  pending  to  certify  the  amount 
of  such  costs  to  the  state  treasurer,  who  shall,  if  said 
costs  be  correctly  certified,  and  the  case  has  been  finally 
terminated,  present  the  claim  to  the  State  Board  of 
Examiners  to  audit,  and,  *  said  claim  being  allowed  by 
said  board,  the  state  auditor  is  directed  to  issue  a  warrant 
on  the  state  treasurer  in  payment  of  such  costs. 

Sec.  36.  No  safe  deposit  company,  bank,  or  other 
institution,  person  or  persons  holding  securities  or  assets 


229 

of  the  decedent  shall  deliver  or  transfer  the  same  to 
the  executor  or  administrator  or  legal  representative  of 
said  decedent  unless  notice  of  the  time  and  place  of 
such  intended  transfer  Ibe  served  upon  the  state  treasurer 
at  least  five  days  prior  to  the  transfer  thereof,  or  unless 
the  tax  for  v^hich  such  securities  or  assets  are  liable 
under  this  act  shall  be  first  paid.  It  shall  be  lawful  for, 
and  the  duty  of,  the  state  treasurer  personally,  or  by 
any  person  by  him  duly  authorized,  to  examine  such 
securities  or  assets  at  the  time  of  such  delivery  or 
transfer.  Failure  to  serve  such  notice  upon  the  state 
treasurer,  or  to  allow  such  examination  on  the  delivery 
of  such  securities  or  assets  to  such  executor,  adminis- 
trator, or  legal  representative  before  said  tax  is  paid 
shall  render  such  safe  deposit  company,  trust  company, 
bank,  or  other  institution,  person  or  persons,  liable  for  the 
payment  of  the  taxes  due  upon  such  securities  or  assets 
as  provided  in  this  act. 

Sec.  37.  Whenever  any  property  belonging  to  a 
foreign  estate,  which  estate,  in  whole  or  in  part,  is 
liable  to  pay  an  inheritance  tax  in  this  state,  the  said 
tax  shall  be  assessed  upon  the  market  value  of  said 
property  remaining  after  the  payment  of  such  debts  and 
expenses  as  are  chargeable  to  the  property  under  the 
laws  of  this  state;  in  the  event  that  the  executor,  adminis- 
trator, or  trustee  of  such  foreign  estate  files  with  the 
clerk  of  the  court  having  ancillary  jurisdiction,  and 
with  the  state  treasurer,  duly  certified  statements  ex- 
hibiting the  true  market  value  of  the  entire  estate  of 
the  decedent  owner,  and  the  indebtedness  for  which  the 
said  estate  has  been  adjudged  liable,  which  statements 
shall  be  duly  attested  by  the  judge  of  the  court  having 
original  jurisdiction,  the  beneficiaries  of  said  estate  shall 
then  be  entitled  to  have  deducted  such  proportion  of 
the  said  indebedness  of  the  decedent  from  the  value  of 
the  property  as  the  value  of  the  property  within  this 
state  bears  to  the  value  of  the  entire   estate. 

Sec.  38.  Whenever  any  property,  real  or  personal, 
within  this  state,  belongs  to  a  foreign  estate,  said 
foreign    estate   passes   in   part   exempt   from   the   inheri- 


230 

tance  tax,  and  in  part  subject  to  said  inheritance  tax,  and 
it  is  within  the  authority  or  discretion  of  the  foreign 
executor,  administrator  or  trustee  administering  the 
estate  to  dispose  of  the  property  not  specifically  devised 
to  direct  heirs  or  devisees  in  the  payment  of  the  debts 
owing  by  the  decedent  at  the  time  of  his  death,  or  in 
the  satisfaction  of  legacies,  devises,  or  trusts  given  to 
direct  collateral  legatees  or  devisees,  or  in  payment  of 
the  distributive  shares  of  any  direct  and  collateral  heirs, 
then  the  property  within  the  jurisdiction  of  the  state, 
belonging  to  such  foreign  estate  shall  be  subject  to  the 
inheritance  tax  imposed  by  this  act,  and  the  tax  due 
thereon  shall  be  assessed  as  provided  in  the  next  preceding 
section  of  this  act,  and  with  the  same  proviso  respecting 
the  deduction  of  the  proportionate  share  of  the  indebt- 
edness, as  therein  provided. 

Sec.  39.  If  a  foreign  executor,  administrator,  or 
trustee,  shall  assign  or  transfer  any  corporate  stock  or 
obligation  in  this  state  standing  in  the  name  of  a  decedent, 
or  in  trust  for  a  decedent,  liable  to  such  tax,  the  tax 
shall  be  paid  to  the  state  treasurer  on  or  before  the 
transfer  thereof;  otherwise  the  corporation  permitting 
its  stock  to  be  so  transferred  shall  be  liable  to  pay  such 
tax,  and  it  is  the  duty  of  the  state  treasurer  to  enforce 
the  payment  thereof. 

Sec.  40.'  Whenever  an  estate  charged,  or  sought  to 
be  charged,  with  the  inheritance  tax,  is  of  .such  a  nature 
or  is  so  disposed  that  the  liability  of  the  estate  is  doubtful, 
or  the  value  thereof  cannot  with  reasonable  certainty  be 
ascertained  under  the  provisions  of  law,  the  state  treasurer 
may,  with  the  approval  of  the  attorney  general,  which 
approval  shall  set  forth  the  reason  therefor,  compromise 
with  the  beneficiaries  or  representatives  of  such  estates, 
and  compound  the  tax  thereon;  but  said  settlement  must 
be  approved  by  the  district  court  or  judge  of  the  proper 
court,  and  after  such  approval,  the  payment  of  the 
amount  of  the  taxes  so  agreed  upon  shall  discharge  the 
lien  against  the  property  of  the  estate. 

Sec.  41.  If  at  any  time  before  the  expiration  of  the 
period  provided  by  law  for  the  payment  of  the  tax   or 


231 

any  extension  thereof  made  by  the  court,  it  be  made 
to  appear  by  petition  duly  verified,  filed  in  said  proceed- 
ings by  the  State  Treasurer  or  by  the  executor,  adminis- 
trator, or  other  person  interested  in  the  estate,  that 
said  estate  has  materially  increased  or  decreased  in  value 
since  the  appraisement  was  made,  then  the  "court  must 
order  a  reappraisement  of  the  estate,  which  appraisement 
shall  be  made  in  the  same  manner  and  with  the  same 
notice  as  the  original  appraisement.  If  the  re-appraise- 
ment fail  to  show  a  difference  in  the  value  of  the  estate 
exceeding  ten  per  cent  of  the  original  appraisement,  then 
the  original  appraisement  shall  stand,  and  the  party 
applying  for  the  reappraisement  shall  pay  the  costs 
thereof. 

If  the  rerappaisement  show  a  difference  in  value  of 
more  than  ten  per  cent  of  the  original  appraisement, 
then  the  tax  shall  be  collected  on  the  basis  of  such 
re-appraisement,  but  the  time  within  which  it  shall  be 
paid  shall  date  from  the  original  appraisement. 

Sec.  42.  This  act  shall  apply  to  all  pending  estates 
which  are  not  closed,  and  the  property  subjected  by  this 
act  to  the  said  tax  is  liable  to  the  provisions  incorporated 
in  this  act. 

Sec.  43.  Title  36,  Compiled  Laws  of  1907,  is  hereby 
repealed. 


A  BILL  ABOLISHING  THE  OFFICE  OF  COUNTY 
ASSESSOR^  AS  AN  ELECTIVE  OFFICE  AND 
PLACING  THE  ASSESSMENT  OF  ALL  PROP- 
ERTY WITHIN  THE  STATE  IN  THE  HANDS  OF 
THE  STATE  BOARD  OF  EQUALIZATION. 

Be  it  Enacted  by  the  Legislature  of  the  State  of  Utah : 

Section  1.  The  office  of  County  Assessor  as  an 
elective  office  is  hereby  abolished. 

Sec.  2.  It  shall  be  the  duty  of  the  State  Bpard  of 
Equalization  to  assess  for  the  purposes  of  taxation  all 
of  the  property  of  this  State. 


232 

Sec.  3.  The  State  Board  of  Equalization  shall  appoint 
in  each  county  of  the  State  a  deputy  whose  title  shall 
be  ''County  Assessor'',  who  shall  hold  his  office  during 
the  pleasure  of  the  State  Board  of  Equalization,  and  whose 
duties  shall  be  those  now  provided  by  law  for  County 
Assessors,  and  whose  salary  shall  be  fixed  by  the  State 
Board  of  Examiners  and  paid  by  the  State. 

Sec.  4.  The  County  Assessor  so  appointed  by  the 
State  Board  of  Equalization  must  be  a  resident  of  the 
county  for  which  he  is  appointed.  The  appointment  shall 
be  made  from  a  list  of  three  to  be  submitted  to  the 
State  Board  of  Equalization  by  the  Board  of  County 
Commissioners  of  the  county  in  which  the  appointment 
is  to  be  made,  endorsed  by  the  judge  of  the  District 
Court  of  the  district  in  which  such  county  is  situated. 

Sec.  5.  The  County  Assessor  may,  under  the  direction 
and  with  the  consent  of  the  State  Board  of  Equalization, 
appoint  one  or  more  deputies,  as  may  be  necessary,  whose 
salary  shall  be  fixed  and  paid  in  the  same  manner  as 
the  salaries  of  County  Assessors. 


AN  ACT  REQUIRING  THE  COLLECTOR  OF   TAXES 

FROM  CAR  COMPANIES  TO  GIVE  BOND  CONDI- 

.     TIONED  ON  THE  FAITHFUL  PERFORMANCE  OF 

HIS    DUTIES,     AND     FIXING      THE      AMOUNT 

THEREOF. 

Be  it  Enacted  by  the  Legislature  of  the  State  of  Utah: 

The  Secretary  of  the  State  Board  of  Equalization, 
before  entering  upon  his  duties  as  collector  of  taxes  from 
car  companies  shall  execute  to  the  State  of  Utah,  a  bond 
in  the  sum  of  ten  thousand  dollars,  with  at  least  two 
good  and  sufficient  sureties,  to  be  approved  by  the  State 
Board  of  Examiners,  conditioned  that  he  will  faithfully 
perform  his  duties  as  such  collector,  and  promptly  pay 
into  the  State  treasury  all  moneys  received  by  him  as 
such  collector. 


867046 


THE  UNIVERSITY  OF  CALIFORNIA  UBRARY 


